Halliburton compared to peers and industry
Halliburton (HAL) is one of the largest US OFS (oilfield equipment and services) companies in the world. Halliburton stock has strengthened somewhat in the past year. On June 5, HAL was trading at $47.87, which was 4% higher than a year ago. In this series, we’ll see what’s driving Halliburton.
The Market Vectors Oil Services ETF (OIH) has risen 2.1% in the past year as of June 5. HAL makes up 15.1% of OIH. National Oilwell Varco (NOV) has significantly outperformed HAL and OIH, increasing 27% since June 6, 2017. Weatherford International (WFT) stock underperformed HAL and the industry, falling 25% in the past year. The price of WTI crude oil has risen 36% during the same period.
What the change in HAL stock suggests
In the past year, HAL stock was at its peak on January 23. Then it fell until the third week of March and has generally risen since. Its quarterly revenues decreased 3% sequentially in the past quarter after steadily rising in the previous four quarters. Its free cash flow generation has been positive in the past four quarters until Q1 2018.
Halliburton’s moving averages
On June 5, Halliburton stock was at a 5.4% discount to its 50-day moving average (or DMA). It was trading 2% above its 200-DMA that day. Its 200-DMA was $46.84 on June 5.
HAL’s 50-DMA crossed over its 200-DMA in January. The stock has been trading above its long-run moving average since the third week of March. That indicates a bullishness for HAL stock. Investors should note that the resurgence of crude oil prices in the past year has driven up the stocks of many OFS companies.
In this series, we’ll analyze Halliburton’s drivers, balance sheet, free cash flow, and dividend yield. We’ll start by looking at management’s comments in the next part.
You can read a comparison of HAL with its larger market cap peer, Schlumberger (SLB), in Market Realist’s Schlumberger and Halliburton Compared to the Industry.