Halliburton’s stock price compared to the industry
Halliburton’s (HAL) one-week stock price didn’t change in the week ending October 13, 2017. Since October 6, 2017, the Energy Select Sector SPDR ETF (XLE) also remained unchanged. XLE represents the broader energy industry. The VanEck Vectors Oil Services ETF (OIH) saw one-week returns of -1%. So, Halliburton has performed in line with XLE. However, the company outperformed OIH in the past week. The Dow Jones Industrial Average (DJIA-INDEX) didn’t change in the past week until October 13, 2017. Since October 6, the SPDR S&P 500 ETF (SPY) also performed in line with Halliburton. SPY produced zero returns during this period.
Crude oil prices and rigs
On October 13, 2017, the West Texas Intermediate crude oil price was 2% higher than a week ago. Despite crude oil prices gaining strength, the US rig count fell 1% in the past week until October 13, 2017. Read Will Bears Run the Crude Oil Market in 2018? to learn more about what drove crude oil prices. You can also read about oilfield services companies like Schlumberger (SLB) and Weatherford International’s (WFT) fundamentals in HAL, HAL, NOV, WFT: How They Stack Up after 2Q17.
Halliburton’s 3Q17 outlook
- Halliburton’s D&E (Drilling and Evaluation) division’s revenue in North America is expected to grow in 3Q17. The international market’s revenue is expected to fall in 3Q17—compared to 2Q17.
- The D&E division’s operating margins are expected to remain flat in 3Q17—compared to 2Q17.
- In 3Q17, Halliburton’s North America revenue growth could outperform the average US land rig count growth. It would benefit Halliburton’s C&P (Completion and Production) division.
- The C&P division’s operating margins are expected to rise 2.25%–3.25%.
Read Will the International Slowdown Hurt Halliburton in 2017? to learn more about Halliburton.
In this series
In this series, we’ll look at the short interest in Halliburton and its correlation with crude oil. In the next part, we’ll discuss Halliburton’s stock price forecast.