On May 22, Zacks Investment Research upgraded oilfield
) to a Zacks Rank #2 (Buy).
DAWSON GEOPHYS (DWSN): Free Stock Analysis
EXTERRAN HLDGS (EXH): Free Stock Analysis
EXTERRAN PTNRS (EXLP): Free Stock Analysis
HALLIBURTON CO (HAL): Free Stock Analysis
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Why the Upgrade?
Operating environment and growth prospects seem bright for
Halliburton, as reflected by the rising earnings estimates for
this leading Houston, Texas-based company. Over the last 60 days,
the Zacks Consensus Estimate for the second quarter of 2013 has
increased 7.14% to 75 cents per share, while that for 2013 went
up 5.94% to $3.21 per share.
The momentum has been strong since Halliburton released its first
quarter earnings results on Apr 22. Earnings per share from
continuing operations - excluding a charge associated with the
Gulf of Mexico disaster in 2010 - came in at 67 cents, beating
the Zacks Consensus Estimate of 57 cents. This was aided by
strong performance in its international business.
With respect to the earnings trend, Halliburton delivered
positive earnings surprises in three of the last four quarters
with an average beat of 9.16%. Moreover, Halliburton has been
retaining shareholders' confidence by returning wealth via
dividend hikes. It increased its quarterly common stock dividend
by 39% to 12.5 cents per share (50 cents per share annualized).
The new dividend was paid on Mar 27, 2013 to shareholders of
record as of Mar 6.
The long-term expected earnings and sales growth projections of
16.12% and 14.53%, respectively, are also fairly impressive.
Going forward, Halliburton anticipates benefiting from its
leading position in the North American oilfield services market,
improving its international margins, and expanding market
penetration in deepwater and underserved international regions.
We expect these trends to result in a strong operating
environment leading to the delivery of positive earnings
Other Stocks to Consider
There are other oilfield services providers in the energy sector
that are also performing well and are worth considering. These
include Zacks Ranked #1 (Strong Buy)
Dawson Geophysical Company
Exterran Holdings Inc.
Exterran Partners LP