Houston-based Halliburton Company (HAL), a global titan in the energy industry and founded in 1919, operates in the oil & gas equipment & services industry and is renowned for its innovative products and services. With a market cap of $30.1 billion, Halliburton operates through two main segments: Completion and Production, and Drilling and Evaluation. The Completion and Production segment specializes in enhancing well production with advanced stimulation, sand control, and cementing services. Meanwhile, the Drilling and Evaluation segment offers cutting-edge drilling fluid systems, wireline services, and digital solutions. Halliburton’s expertise spans from artificial lift services to cloud-based artificial intelligence solutions, making it a cornerstone in the energy sector's technological advancement.
Companies worth $10 billion or more are generally described as “large-cap stocks,” Halliburton fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the oil and gas equipment & services industry. With its expansion in over 70 countries and diverse workforce of over 40,000, Halliburton has established a strong foothold in the industry.
Despite its strengths, shares of Halliburton have had a rough ride. After hitting a 52-week high of $43.85 on Oct. 18, 2023, they have slipped 22.4%. Over the past three months, HAL stock declined 11.2%, lagging behind the S&P Oil & Gas Equipment & Services SPDR (XES), which dipped just 2.5%.
Moreover, in the longer term, HAL has not fared so well, dipping 5.9% on a YTD basis and underperforming XES’ 5.4% returns. Even over the past 52 weeks, HAL’s modest 5% gain trails XES’ impressive 20.3% surge.
To confirm the bearish trend, Halliburton has traded below its 50-day and 200-day moving averages since late April.
Halliburton shares have struggled in 2024, falling into the red due to sliding oil prices and a stronger dollar, which put a squeeze on their international operations. Investors are jittery about Halliburton’s ability to stay profitable amid economic uncertainties and fluctuating demand for oil-field services. Despite posting better-than-expected Q1 earnings on April 23, the stock dipped marginally, probably due to its declining bottom line.
In the competitive arena of energy equipment and services, Baker Hughes Company (BKR) has taken the lead over Halliburton, showing resilience with a marginal uptick on a YTD basis and a solid 12.9% gain over the past 52 weeks.
Despite trailing its industry peers, Halliburton remains a favorite among Wall Street analysts. The stock has a consensus “Strong Buy” rating from the 19 analysts covering it and boasts a mean price target of $48.31, signaling a potential 42% upside from current price levels.
On the date of publication, Sristi Jayaswal 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.
