This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Plenty to Love With Halliburton

Stocks in this article: HAL SLB BHI

NEW YORK (TheStreet) -- With almost 40% stock gains in the trailing twelve months, Halliburton (HAL) plays second fiddle to no one in the energy services space. Unless Schlumberger (SLB) happens to be in the same room. Even then, the debate would be extremely close.

To that end, I believe high expectations for Halliburton continue to be what keeps the company "trailing" Schlumberger. It's always been perception. Halliburton's investors have enjoyed 38% stock gains in 2013 versus 22% for Schlumberger. They've been "disrespected" all the way to the bank. If recent moves by Halliburton's management serve as indictators, expect this race to get even closer.

[Read: Why Apple Is so Despised]

First and foremost, given the better-than-expected results we've seen from all of the oil majors in the October quarter, there are clear signs that business conditions in North America have drastically improved, a plus for Halliburton since that is where the company takes in 50% of its revenue.

The entire industry has already bottomed and the worst is over. In that regard, while management does deserve credit for having navigated the weak oil prices environment and soft rig counts, it no longer makes sense to appraise the company's performance on a quarter-by-quarter basis, not when upstream spending in the U.S. has just begun to pick up.

What I mean is that although the industry's turnaround is encouraging, investors would be doing themselves a disservice to not expect some volatility. And I would caution about having unrealistic near-term expectations about what Halliburton is able to do. The good news here is that Bakken, a low-permeability formation that contains the largest oil accumulation in the contiguous U.S., should help Halliburton's 2014 performance.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs