) hit a 52-week high of $47.66 on Aug 20. In fact, the Houston,
TX-based oilfield services behemoth has seen its stock price
climb some 33% since the beginning of the year. This price
appreciation can be attributed to consistency in its
earnings/cash flows and attractive fundamentals
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 five times in the last 6
quarters, enjoys very strong relationships with both
publicly-traded and national oil companies worldwide.
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
the important market in this regard.
Additionally, the world's second-largest oilfield services firm
) remains in excellent financial health with some $1.4 billion in
cash and a debt-to-capitalization ratio of around 24%. This helps
Halliburton to capitalize on investment opportunities and offers
options to make strategic acquisitions, thereby further improving
Finally, Halliburton's recent announcement of a $5 billion share
buyback program, together with the 39% increase in its quarterly
dividend (declared in Apr) are other pieces of positive news.
These actions not only highlight Halliburton's commitment to
create value for shareholders but also underline the energy
equipment supplier's healthy financial condition and confidence
in its business going forward.
Zacks Rank & Stock Picks
With Halliburton shares trading at 52-week high, any upside from
here may be limited. Meanwhile one can look at
SEACOR Holdings Inc.
) as attractive investments. These energy equipment suppliers -
sporting a Zacks Rank #1 (Strong Buy) - offer value and are worth
accumulating at current levels.
SEACOR HLDGS (CKH): Get Free Report
DRIL-QUIP INC (DRQ): Free Stock Analysis
HALLIBURTON CO (HAL): Free Stock Analysis
SCHLUMBERGER LT (SLB): Free Stock Analysis
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