Back to top

Image: Bigstock

Halliburton (HAL) Soars 7.8%: Is Further Upside Left in the Stock?

Read MoreHide Full Article

Halliburton (HAL - Free Report) shares soared 7.8% in the last trading session to close at $31.92. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4% gain over the past four weeks.

Halliburton’s shares moved higher amid optimism that recent U.S. actions related to Venezuela’s President Nicolás Maduro could pave the way for increased activity in the oil-rich country. Any renewed investment by U.S. exploration and production companies to lift Venezuela’s subdued output would likely provide an indirect lift to oilfield services providers such as Halliburton. Market sentiment was further strengthened after Donald Trump publicly urged U.S. oil companies to commit significant capital to rebuilding Venezuela’s oil infrastructure, emphasizing a leading role for American firms. Adding to the positive momentum, a Form 4 regulatory filing showed that Chief Financial Officer Eric Carre purchased 37,548 shares on Jan 2 under the company’s stock and incentive plan, reinforcing investor confidence in the stock.

This provider of drilling services to oil and gas operators is expected to post quarterly earnings of $0.54 per share in its upcoming report, which represents a year-over-year change of -22.9%. Revenues are expected to be $5.39 billion, down 3.9% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Halliburton, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on HAL going forward to see if this recent jump can turn into more strength down the road.

 

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Halliburton belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, FMC Technologies (FTI - Free Report) , closed the last trading session 2.1% higher at $48.29. Over the past month, FTI has returned 2.8%.

For FMC Technologies, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.51. This represents a change of -5.6% from what the company reported a year ago. FMC Technologies currently has a Zacks Rank of #2 (Buy).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Halliburton Company (HAL) - free report >>

TechnipFMC plc (FTI) - free report >>

Published in