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2 Intriguing Stocks to Watch After Earnings: HAL,TEL
Halliburton (HAL - Free Report) and TE Connectivity (TEL - Free Report) are two top-rated Zacks stocks that were able to exceed their quarterly expectations on Wednesday, solidifying why they are worthy of investors' consideration at the moment.
Sporting a Zacks Rank #2 (Buy), respectively, Halliburton has stood out as one of the world’s leading oilfield service providers, with TE Connectivity gaining traction as a global technology company that designs and manufactures connectivity and sensor solutions for a wide range of industries.
Halliburton’s Momentum Continues After Maduro's Capture
Halliburton shares have been on a tear as a surge in demand for oil-field services is expected if the U.S. gains control over Venezuela’s massive oil industry following the ousting of long-time Venezuelan President Nicolas Maduro.
Multiple reports have indicated that Halliburton is planning a possible restart in Venezuela, after previously having operations in the oil-rich country for decades before leaving due to U.S. sanctions.
Halliburton CEO Jeff Miller has stated that his phone has been “ringing off the hook” with inquiries about Venezuela since the U.S. began opening the country’s oil sector, and that they could scale up operations there fairly quickly based on their preexisting footprint and equipment in the country.
Operations in Venezuela would be very lucrative for an oil-field services company that has been known to consistently meet or beat Wall Street's expectations. Halliburton didn’t include any new statements about Venezuela in its quarterly report this morning, but blasted EPS expectations by 27% with Q4 earnings at $0.69 per share compared to estimates of $0.54. On the top line, Q4 sales of $5.65 billion came in 4% above expectations of $5.4 billion.
Image Source: Zacks Investment Research
Halliburton stock was up +4% in today’s trading session and has now spiked nearly +30% in the last three months to a new 52-week high of $33 a share, as shown above.
The momentum is also attributed to high investor sentiment for its operational efficiency, even as Halliburton has made it clear that fiscal 2026 will be a “rebalancing” year, with its guidance calling for Q1 revenue to be down 7-9%. Still, cost-cutting initiatives and spending adjustments have attracted investors, with Halliburton generating $875 million in free cash flow (FCF) during Q4 and returning 85% of its FCF to shareholders last year via a $1 billion stock repurchase plan and dividends.
HAL has a generous 2.12% annual dividend yield, with Halliburton increasing its dividend by 33% in the last five years. Plus, there should be plenty of room for more dividend hikes, considering Halliburton's payout ratio is only at 28%.
Image Source: Zacks Investment Research
TEL Has Become a Buy the Dip Target
Reporting strong results for its fiscal first quarter, TE Connectivity stock dipped 1% on Wednesday as short-term investors may be locking in some of the 50% gains that TEL has produced over the last year.
TE Connectivity has been benefiting from industrial, transportation, and AI-related demand, with Q1 sales increasing 22% year over year to $4.66 billion and topping estimates of $4.5 billion by 3%. Even better, Q1 EPS was up 33% to a new peak of $2.72 and beat expectations of $2.54 by 7%. This comes as TE Connectivity reported record orders of $5.1 billion and notably generated strong FCF of $608 million.
Furthermore, TE Connectivity said it returned 100% of its FCF to shareholders during Q1 via share repurchases and dividends (1.22% annual yield). TE Connectivity also gave favorable guidance that came in above the Zacks Consensus, expecting Q2 EPS and sales to increase by double-digits as well, and projecting AI-related revenue for the year to be $200 million more than initially expected.
TEL is now 7% from a 52-week high of $250 a share, but the technical tape shows its recent resilience regarding the 50-day SMA (green line below), which is ironically at today's closing price of $231.
Image Source: Zacks Investment Research
Bottom Line
Most intriguing about Halliburton and TE Connectivity stock is that they are reasonably valued in terms of price to earnings and had already been benefiting from a pleasant trend of positive EPS revisions before their favorable quarterly reports.
Their enticing stock buybacks and respectable dividends signal confidence in their future cash generation and a commitment to shareholder returns, making them viable long-term investments to consider.
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2 Intriguing Stocks to Watch After Earnings: HAL,TEL
Halliburton (HAL - Free Report) and TE Connectivity (TEL - Free Report) are two top-rated Zacks stocks that were able to exceed their quarterly expectations on Wednesday, solidifying why they are worthy of investors' consideration at the moment.
Sporting a Zacks Rank #2 (Buy), respectively, Halliburton has stood out as one of the world’s leading oilfield service providers, with TE Connectivity gaining traction as a global technology company that designs and manufactures connectivity and sensor solutions for a wide range of industries.
Halliburton’s Momentum Continues After Maduro's Capture
Halliburton shares have been on a tear as a surge in demand for oil-field services is expected if the U.S. gains control over Venezuela’s massive oil industry following the ousting of long-time Venezuelan President Nicolas Maduro.
Multiple reports have indicated that Halliburton is planning a possible restart in Venezuela, after previously having operations in the oil-rich country for decades before leaving due to U.S. sanctions.
Halliburton CEO Jeff Miller has stated that his phone has been “ringing off the hook” with inquiries about Venezuela since the U.S. began opening the country’s oil sector, and that they could scale up operations there fairly quickly based on their preexisting footprint and equipment in the country.
Operations in Venezuela would be very lucrative for an oil-field services company that has been known to consistently meet or beat Wall Street's expectations. Halliburton didn’t include any new statements about Venezuela in its quarterly report this morning, but blasted EPS expectations by 27% with Q4 earnings at $0.69 per share compared to estimates of $0.54. On the top line, Q4 sales of $5.65 billion came in 4% above expectations of $5.4 billion.
Image Source: Zacks Investment Research
Halliburton stock was up +4% in today’s trading session and has now spiked nearly +30% in the last three months to a new 52-week high of $33 a share, as shown above.
The momentum is also attributed to high investor sentiment for its operational efficiency, even as Halliburton has made it clear that fiscal 2026 will be a “rebalancing” year, with its guidance calling for Q1 revenue to be down 7-9%. Still, cost-cutting initiatives and spending adjustments have attracted investors, with Halliburton generating $875 million in free cash flow (FCF) during Q4 and returning 85% of its FCF to shareholders last year via a $1 billion stock repurchase plan and dividends.
HAL has a generous 2.12% annual dividend yield, with Halliburton increasing its dividend by 33% in the last five years. Plus, there should be plenty of room for more dividend hikes, considering Halliburton's payout ratio is only at 28%.
Image Source: Zacks Investment Research
TEL Has Become a Buy the Dip Target
Reporting strong results for its fiscal first quarter, TE Connectivity stock dipped 1% on Wednesday as short-term investors may be locking in some of the 50% gains that TEL has produced over the last year.
TE Connectivity has been benefiting from industrial, transportation, and AI-related demand, with Q1 sales increasing 22% year over year to $4.66 billion and topping estimates of $4.5 billion by 3%. Even better, Q1 EPS was up 33% to a new peak of $2.72 and beat expectations of $2.54 by 7%. This comes as TE Connectivity reported record orders of $5.1 billion and notably generated strong FCF of $608 million.
Furthermore, TE Connectivity said it returned 100% of its FCF to shareholders during Q1 via share repurchases and dividends (1.22% annual yield). TE Connectivity also gave favorable guidance that came in above the Zacks Consensus, expecting Q2 EPS and sales to increase by double-digits as well, and projecting AI-related revenue for the year to be $200 million more than initially expected.
TEL is now 7% from a 52-week high of $250 a share, but the technical tape shows its recent resilience regarding the 50-day SMA (green line below), which is ironically at today's closing price of $231.
Image Source: Zacks Investment Research
Bottom Line
Most intriguing about Halliburton and TE Connectivity stock is that they are reasonably valued in terms of price to earnings and had already been benefiting from a pleasant trend of positive EPS revisions before their favorable quarterly reports.
Their enticing stock buybacks and respectable dividends signal confidence in their future cash generation and a commitment to shareholder returns, making them viable long-term investments to consider.