|Bid||0.00 x 36100|
|Ask||0.00 x 800|
|Day's Range||61.40 - 62.08|
|52 Week Range||59.25 - 80.35|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 19, 2018|
|Forward Dividend & Yield||2.00 (3.27%)|
|1y Target Est||76.14|
The Zacks Analyst Blog Highlights: Wells Fargo, Schlumberger, Biogen, American Express and Illinois Tool Works
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 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.
The global E&P (exploration and production) spend fell significantly in 2015 and 2016. The investments in E&P need to grow to meet the global demand for oil and gas. Increased E&P spend should bode well for oilfield services companies serving the sector. Between 2019 and 2021, the global E&P spend, including capital and operating expenditures, might grow at a compound annual growth rate of 9%.
Schlumberger (SLB) provides a range of products and services for hydrocarbon recovery that optimizes reservoir performance. The company operates through four segments—Reservoir Characterization, Drilling, Production, and Cameron. The Reservoir Characterization segment provides technologies involved in finding and defining hydrocarbon resources.
The oil and gas producer also announced job cuts and said it would shift its headquarters to Asia, where it recently acquired new assets and where a new chief executive would be based. Ophir's shares were almost 4 percent lower at 0730 GMT at 36.39 pence. Its share price has fallen by more than 50 percent since the start of the year, due largely to its failure to progress with the LNG project.
While Schlumberger (SLB) is currently being hit by pipeline constraints in Permian, the company's wider international presence and healthy balance sheet can help lift the stock from its low levels.
Short term, oil and gas may still have legs thanks to a turnaround in government policy, but companies within the sector will only experience lower sales and profit, and eventually become uneconomical. Schlumberger (SLB) is the world's leading provider of technology for drilling, production and processing to the oil and gas industry. Warning! GuruFocus has detected 3 Warning Signs with SLB.
Oil prices ended the week lower, with the rally being kneecapped by a variety of bearish factors, but there’s plenty of reason to believe that oil prices won’t fall much further in the short-term
General Electric Co. (GE), Schlumberger Ltd. (SLB), Vodafone Group PLC (VOD) and WPP PLC (WPP) have declined to their respective 3-year lows
The largest Insider Buys this week were for American Express Co. (AXP), Schlumberger Ltd. (SLB), Allergan PLC (AGN) and Keurig Dr Pepper Inc.
Oil prices look set to see their largest weekly decrease since July as an unexpected build in gasoline inventories pointed towards the end of driving season and a fall in demand
Halliburton warned on earnings as customers face "budget exhaustion" and a transport backlog in the Permian Basin hits shale stocks.
The Nasdaq fell more than 1 percent on Wednesday, dented by technology stocks after Facebook Inc and Twitter Inc executives defended their companies before skeptical U.S. lawmakers. Adding to pressure on technology stocks, the Justice Department later said it would meet with state attorneys general to discuss worries that social media platforms were "intentionally stifling the free exchange of ideas." Facebook and Twitter were not specifically named. Twitter shares dropped 6.1 percent.
On CNBC's "Mad Money Lightning Round" , Jim Cramer said he wouldn't sell Schlumberger Limited. (NYSE: SLB ). He would be a buyer of the stock. Instead of Commscope Holding Company Inc (NASDAQ: ...