This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Halliburton's Making Its Way to $50

I'm not suggesting that the worst is over, only that any prolonged weakness in North America is not as dire. In that regard, management deserves a considerable amount of credit for having navigated such a brutal environment, especially for the 15% sequential growth in operating income, which outperformed Schlumberger by 2%.

It wasn't a blowout quarter, not by any stretch. But the company did what it had to do to beat both on revenue and earnings estimates. There's not much more that an investor can ask for, especially given the overall state of this industry. Investors should also be encouraged by the fact that the company announced a $5 billion share buyback program, which indicated an increase level of confidence by management that the worst is over.

I wouldn't expect that capital commitments of that size would have been made if management was worried about preserving the cash to battle the weakness in, say, North America. What's more, the $5 billion stock repurchase program, which now goes along with the company's 39% dividend increase (announced in April), makes Halliburton one of the best shareholder-friendly stocks on the market. It is clear that management is committed to returning value to investors.
[Read: <a target="blank" data-add-tracking="true" href=""><em>Will Automatic Bill Pay Ruin Your Finances?</em></a>]

That level of commitment is tough to overlook, especially with management now posting better operational results, which also coincides with sustained growth in international markets.

The bottom line is that regardless of the industry's direction, Halliburton is going to be around for a very long time. Given the fact that the oil services industry has yet to fully rebound, I believe now is the perfect time to buy the stock, which is a sure bet to reach $50 per share.

At the time of publication, the author held no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Richard Saintvilus is a co-founder of where he serves as CEO and editor-in-chief. After 20 years in the IT industry, including 5 years as a high school computer teacher, Saintvilus decided his second act would be as a stock analyst - bringing logic from an investor's point of view. His goal is to remove the complicated aspect of investing and present it to readers in a way that makes sense.

His background in engineering has provided him with strong analytical skills. That, along with 15 years of trading and investing, has given him the tools needed to assess equities and appraise value. Richard is a Warren Buffett disciple who bases investment decisions on the quality of a company's management, growth aspects, return on equity, and price-to-earnings ratio.

His work has been featured on CNBC, Yahoo! Finance, MSN Money, Forbes, Motley Fool and numerous other outlets.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HAL $40.40 1.84%
AAPL $117.34 -0.81%
FB $107.12 2.76%
GOOG $767.04 3.29%
TSLA $237.19 3.01%


Chart of I:DJI
DOW 17,888.35 +168.43 0.95%
S&P 500 2,102.63 +22.22 1.07%
NASDAQ 5,156.3060 +47.64 0.93%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs