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Which OFS Stock Is Most Volatile: SLB, HAL, BHI, or FTI?

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Halliburton is most volatile in our group

As of November 4, 2016, Halliburton (HAL) had an implied volatility of ~31%. After its 3Q16 earnings were announced on October 19, 2016, HAL’s implied volatility rose from ~28.6% to ~31%. HAL now has the highest implied volatility among the group of four major OFS (oilfield services) companies that we’ve been discussing throughout this series.

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FTI’s and BHI’s implied volatility

As of November 4, 2016, FMC Technologies (FTI) had an implied volatility of ~30.2%. After FTI announced its 3Q16 earnings on October 19, FTI’s implied volatility fell from ~35.0%.

As of November 4, 2016, Baker Hughes (BHI) had an implied volatility of ~28.6%. After its 3Q16 earnings were announced on October 25, Baker Hughes’s implied volatility fell from ~33.3%.

Notably, BHI is 0.24% of the iShares Russell 1000 Value ETF (IWD). The energy sector makes up 13.4% of IWD.

SLB’s implied volatility is the lowest

On November 4, 2016, Schlumberger (SLB) had an implied volatility of ~22.1%. After its 3Q16 earnings were announced on October 20, SLB’s implied volatility fell from ~23.2%.

Remember, implied volatility reflects investors’ views of a stock’s potential movement, but it does not forecast direction. Implied volatility is derived from an option pricing model, and so investors should note that the correctness of an implied volatility’s suggested price can be uncertain.

In the next part, we’ll compare the relative valuation multiples of these four OFS energy stocks.

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