Halliburton Company (HAL) is one of the largest oilfield service providers in the world. Valued at $32.33 billion by market cap, the Houston, Texas-based company offers a variety of equipment, maintenance, engineering, and construction services to the energy, industrial, and government sectors.
Shares of this leading oilfield services provider have underperformed the broader market over the past 52 weeks. HAL has gained 18.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 25.2%. In 2024, shares of HAL are down marginally, compared to the SPX's 10.4% gains on a YTD basis.
Zooming in further, HAL is also lagging behind the iShares U.S. Oil Equipment & Services ETF’s (IEZ) 22.4% gains over the past 52 weeks.
Halliburton underperformed the broader markets due to sliding oil prices, a strengthening dollar index affecting international operations, and investor concerns regarding the company's ability to maintain profitability amid economic uncertainties and fluctuating demand for oil-field services. The stock lost marginally despite reporting better-than-expected Q1 earnings on Apr. 23. However, it recovered the following day.
For the current fiscal year, ending in December, analysts expect HAL's EPS to grow by 8.3% to $3.39. The company's earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 19 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 17 “Strong Buy” ratings, one “Moderate Buy,” and one “Hold.”
This configuration is more bullish than three months before, with 16 analysts suggesting a "Strong Buy."
On May 1, Jefferies raised Halliburton's price target to $50 and maintained a "Buy" rating, citing confidence in meeting 2024 expectations and growth potential in 2025. That implies a potential upside of 39.6% from the current price levels.
The mean price target of $48.40 represents a premium of 35.2% to HAL's current levels. The Street-high price target of $54 implies a potential upside of 50.8%.
On the date of publication, Sohini Mondal 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.
