|Bid||40.04 x 1400|
|Ask||40.05 x 800|
|Day's Range||39.24 - 40.16|
|52 Week Range||35.75 - 57.86|
|PE Ratio (TTM)||367.89|
|Forward Dividend & Yield||0.72 (1.86%)|
|1y Target Est||N/A|
Live from the floor of the New York Stock Exchange, Yahoo Finance's Jared Blikre joins Alexis Christoforous to discuss the latest moves.
Live from the floor of the New York Stock Exchange, Keith Bliss of DriveWealth joins Yahoo Finance's Seana Smith and Dion Rabouin to discuss the latest moves.
The sector may already be over the worst of the pain, and could get a boost from higher oil prices coupled with new projects.
Based on median target prices from analysts surveyed by Reuters, Schlumberger (SLB), Halliburton (HAL), Baker Hughes (BHGE), and TechnipFMC (FTI) have an upside potential of 27%, 36%, 14%, and 23%, respectively. On September 13, Macquarie cut its target price for Halliburton from $45 to $43. On September 11, Stifel started coverage on Halliburton with a “buy” rating. Stifel has given Halliburton a target price of $45. On the same day, Stifel started coverage on Schlumberger and gave it a “hold” rating with a target price of $69.
In 2014, WTI crude oil prices were north of $100 per barrel. Not surprisingly, energy stocks, and in particular oil stocks, were doing pretty well back then. The oil market was left with this massive oversupply glut, and that sent oil prices tumbling.
In the week that ended on September 14, the oil rig count rose by seven to 867, just two fewer than its three-and-a-half-year high.
Halliburton (HAL) is trading at a forward EV-to-EBITDA multiple of ~8.6x—lower than Schlumberger (SLB) and Baker Hughes’s (BHGE) forward EV-to-EBITDA multiples. Schlumberger and Baker Hughes are trading at multiples of ~12.1x and 10.6x, respectively.
So far in 2018, oilfield services stocks have fallen broadly. The VanEck Vectors Oil Services ETF (OIH) has fallen ~9% YTD (year-to-date). Schlumberger (SLB), Halliburton (HLB), and TechnipFMC (FTI) have fallen 13%, 23%, and 6%, respectively, in 2018. Baker Hughes (BHGE) has risen ~1%. Together, the four companies form ~43% of OIH.
The number of Halliburton (HAL) shares shorted fell from ~16.7 million on August 15 to ~14.4 million on August 31—a fall of ~13.4%. According to data released on September 12, the short interest in Halliburton as a percentage of its float is currently ~1.6%. Halliburton’s short interest ratio is 2x, which shows that it will take about two days to cover all of the open short positions in Halliburton.
Curently, Halliburton’s (HAL) DE (debt-to-equity) ratio is 1.2x—the highest among the four companies that we’re comparing—Halliburton, Baker Hughes (BHGE), Schlumberger (SLB), and TechnipFMC (FTI). Baker Hughes, Schlumberger, and TechnipFMC have DE ratios of 0.2x, 0.5x, and 0.3x, respectively.
Halliburton’s (HAL) expected capital expenditure for 2018 is $2.0 billion, which is ~50% higher than its capital expenditure in 2017. In the first half of 2018, the company spent $1.1 billion on growth projects. To learn more, read Understanding Halliburton’s Capital Expenditure Focus.