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Halliburton Has Underperformed Its Peers in 2018—What’s Ahead?


Nov. 20 2020, Updated 4:06 p.m. ET

HAL’s underperformance

Halliburton (HAL) stock has fallen ~18.0% in 2018, underperforming its sector peers. The stock fell significantly after its second-quarter earnings, although it’s been on a downtrend since mid-May. Halliburton expects some temporary issues in its North America market to impact its performance in the rest of 2018.

We’ll discuss these issues in detail in the next part of this series. Analysts think Halliburton has an upside potential of ~35.0%. You can learn more in SLB, FTI, HAL: Which Stocks Do Analysts Recommend?

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The chart above compares Halliburton stock with its peers in 2018. Schlumberger (SLB) has fallen ~7.0% in 2018. National Oilwell Varco (NOV) has risen ~22.0%, and Baker Hughes (BHGE) is flat YTD (year-to-date). The VanEck Vectors Oil Services ETF (OIH) has fallen ~7.0% YTD. As the graph shows, a fall in crude oil prices over the last month has negatively impacted the oilfield services stocks.

HAL’s moving averages

Halliburton (HAL) is currently trading well below both its 50-day and 200-day moving averages. A month ago, its 50-day moving average fell below its 200-day average—a bearish indicator. These two averages may provide near-term resistance for the stock.

Halliburton has been trading in the range of ~$40–$42 for the last month. In the absence of any catalysts, the stock may continue to trade sideways in the near term.

In the next part, let’s see where Halliburton stands in terms of its valuation.


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