) hit a 52-week high of $67.35 on Jun 10, 2014. In fact, the
Houston, TX-based oilfield services behemoth has seen its stock
price climb some 34.2% year to date. This price appreciation can be
attributed to its superior business model, attractive fundamentals
and the ability to grow cash flow.
Why the Bullishness?
Halliburton is among the top three players in each of its
product/service categories and is present in all major
hydrocarbon-producing regions of the world. The company, which has
surpassed earnings estimates in each of the last 6 quarters, has
tie-ups with both publicly traded and national oil companies
Additionally, Halliburton's international operations continue to
reflect strong demand for its services on the back of higher
activity. This is expected to be a key growth driver going forward
with pricing in the region remaining competitive. We have
identified Latin America - offering enough shale development
opportunities - as a key market in this regard. Additionally,
despite certain issues in Halliburton's core U.S. segment, the
long-term prospects for the business remain robust.
Moreover, Halliburton's first-quarter earnings per share − from
continuing operations - came at in at 73 cents, beating the Zacks
Consensus Estimate of 71 cents and improving from the year-ago
adjusted figure of 67 cents. The earnings strength can be
attributed to improved stimulation work in the U.S. and increased
profits from its pressure pumping business in Argentina.
Finally, last September, Halliburton was granted a reprieve from
the United States Department of Justice, when it closed its
investigation into the company's role in the Gulf of Mexico's
Macondo well disaster. We believe that the judge's acceptance of
Halliburton's guilty plea removes an overhang from the oilfield
service provider's future.
Zacks Rank & Stock Picks
With Halliburton shares trading at a 52-week high, any upside
from here may be limited, as suggested by the company's Zacks Rank
Meanwhile, one can look at better-ranked players in the same
C&J Energy Services Inc.
Emerge Energy Services LP
Basic Energy Services Inc.
). C&J Energy Services and Emerge Energy Services sport a Zacks
Rank #1 (Strong Buy) while Basic Energy Services carries Zacks Rank
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HALLIBURTON CO (HAL): Free Stock Analysis
EMERGE ENRG SVC (EMES): Free Stock Analysis
BASIC EGY SVCS (BAS): Free Stock Analysis
C&J ENERGY SVCS (CJES): Free Stock Analysis
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