Halliburton versus peers and industry
Halliburton (HAL), one of the largest US oilfield service (or OFS) companies, has seen its stock price weaken in 2017. On December 5, 2017, HAL was trading at $43.63, ~19% lower than its price at the beginning of 2017. In this series, we’ll discuss what’s driving Halliburton. For a comparison of large OFS companies, read Top 5 OFS Companies Based on 2017 Returns.
What does Halliburton’s stock price change suggest?
This year, Halliburton’s stock price fell until August, when it started moving upwards. HAL’s quarterly revenue improved in the first three quarters of 2017, after falling sharply in 2016. Its free cash flow generation improved significantly in 3Q17. For more on crude oil prices, read How US Tax Bill and OPEC Could Affect Crude Oil Prices.
Halliburton’s moving averages
On November 5, 2017, Halliburton’s stock price coincided with its 50-day MA (moving average). It was trading ~3% below its 200-day MA.
HAL’s 50-day MA crossed over its 200-day MA in May 2017. HAL’s stock price has been trading below its 200-day MA since the second week of April 2017, suggesting bearishness. However, HAL’s stock price has been keeping close to its 50-day MA since September 2017, indicating some short-term strength.
In this series, we’ll analyze Halliburton’s drivers, balance sheet, free cash flow, and dividend yield. We’ll look at Halliburton management’s comments in the next part.