Stockchase Opinions

C. Kim Goodwin Halliburton Co HAL-N TOP PICK May 21, 2004

Has corrected because investors are concerned about auto production, but they have great diversification. Into high end entertainment systems. 15% revenue grower. 25% earnings grower.
$73.770

Stock price when the opinion was issued

oil gas field services
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SELL ON STRENGTH

The time to buy oil stocks was over a month ago, not now after the price of crude as surged. Where were these "buy" experts? He just sold some shares of HAL into strength to take profits.

BUY

They just topped EPS, but missed revenues, with US revenue falling sequentially.  Guidance was positive with oilfield services to remain strong; their international business will drive growth (i.e. Middle East, Africa). They're also confident about their construction business.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

Recently reported operating income was up 33%, despite their exit from Russia in 2022.  Cash reserves are stable, while debt is retired and shares bought back.  It trades at 13x earnings, 3.5x book (a little expensive), and supports a robust 30% ROE.  Its dividend is backed by a payout ratio under 25% of cash flow.  We recommend setting a stop-loss at $28, looking to achieve $47 -- upside potential of 28%.  Yield 1.7%   

(Analysts’ price target is $47.39)
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O’Reilly

With oil prices holding over $80 and global oil demand expected to hit all time highs this year,  we reiterate this global energy giant.  We like that quarterly cash reserves are growing, while debt is retired and shares bought back.  It trades at 13x earnings and supports a 30% ROE.  We recommend trailing up the stop (from $28) to $33, looking to achieve $47 — 21% upside potential.  Yield 1.7%

(Analysts’ price target is $47.31)
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

We again reiterate this global oilfield service providers as a TOP PICK.  Continued positive outlooks for oil prices will stimulate demand for their services, causing analysts to expect over 30% growth in cash flow.  Quarterly cash reserves are growing again while debt is retired and shares bought back.  It trades at 13x earnings and supports a 30% ROE.  We recommend trailing up the stop (from $33) to $35 at this time, looking to achieve $47 -- upside potential over 20%.  Yield 1.6%  

(Analysts’ price target is $47.49)
DON'T BUY
SLB vs. HAL

Neither. Look at the 10-year charts, both lower today than 10 years ago. When flush with money, make acquisitions; then when things turn nasty, take write downs. Result is less than zero value creation for shareholders. The only people making money are the executives.

BUY

A trump presidency will actually hurt oil stocks, because he will add more drilling. Better to look at oil services companies like HAL.

DON'T BUY

Based on valuation, this could bounce to $31.32, but oil is under pressure no matter who wins the US election.

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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Apr 16/24, Down 25.7%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with HAL has triggered its stop at $35.  To remain disciplined, we recommend covering the position at this time.  

BUY

It reports Wednesday. SLB reported good numbers today, but that was more due to their overseas business. In contrast, HAL is more domestic, so HAL won't put up that surprise. He's bullish this name because Trump wants to drill for oil.