Halliburton Company (HAL), headquartered in Houston, Texas, delivers energy, engineering, and construction services and produces specialized products for the energy sector. With a market cap of $26.5 billion, Halliburton supports customers in the exploration, development, and production of oil and natural gas through a range of services, products, and integrated solutions (NGM24).
Shares of this leading oil & gas equipment and services provider have substantially underperformed the broader market over the past year. HAL has declined 21.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.5%. In 2024 alone, HAL stock is down 16.5%, while the SPX is up 25.5% on a YTD basis.
Narrowing the focus, HAL’s underperformance looks less pronounced compared to the SPDR S&P Oil & Gas Equipment Services ETF (XES). The exchange-traded fund has surged marginally over the past year and on a YTD basis.
HAL's weaker price momentum relative to the broader market stems from ongoing industry consolidation, which is reshaping the oilfield services sector and limiting opportunities for service providers.
Halliburton shares gained over 1% on Nov. 4 as energy stocks rallied, driven by a more than 2% rise in WTI crude oil to a one-week high.
However, on Oct. 28, HAL shares dropped over 1% following a 6% decline in oil prices, alongside similar losses in other oil-related stocks.
For the current fiscal year, ending in December, analysts expect HAL’s EPS to decrease 3.2% to $3.03 on a diluted basis. The company’s earnings surprise history is mixed, beating or matching the consensus estimate in three of the last four quarters, missing on another occasion.
Among the 22 analysts covering HAL stock, the consensus rating is a “Strong Buy.” That’s based on 18 “Strong Buy” ratings, one “Moderate Buys,” and three “Holds.”
This configuration is slightly more bullish than two months ago, with 17 suggesting a “Strong Buy.”
On Nov. 8, Barclays PLC (BCS) analyst J. David Anderson lowered Halliburton’s price target from $47 to $43 but maintained an “Overweight” rating. Despite a smaller-than-expected North America slowdown, Halliburton's Q4 EBITDA guidance fell 8% below consensus, with 2025 projections lowered due to a weaker international outlook. Anderson notes that investors are struggling to find catalysts in the current downturn.
The mean price target of $39.82 represents a 31.9% premium to HAL’s current price levels. The Street-high price target of $47 suggests an upside potential of 55.7%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
