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TheStreet Open House

One Factor Driving Halliburton (HAL) Stock Down Today

Stocks in this article: HAL

NEW YORK (TheStreet) -- Halliburton  (HAL) fell Wednesday after Gamco Investors chairman and CEO Mario Gabelli told CNBC the company could buy Weatherford International  (WFT) .

"There we think [Weatherford] management is taking bad assets, putting them in a bucket, good assets, trying to grow them, buying back stock, reducing debt," Gabelli told CNBC's Kelly Evans. "And what happens is that we think Halliburton will want to own them at a 50%+ premium from here."

Halliburton stock fell 2.11% to $68.33 at 10:47 a.m. More than 6.8 million shares had changed hands to beat the average volume of 6,100,020. Weatherford was up 3.4% to $23.71.

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Separately, TheStreet Ratings team rates HALLIBURTON CO as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate HALLIBURTON CO (HAL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, solid stock price performance, impressive record of earnings per share growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Energy Equipment & Services industry average. The net income increased by 20.2% when compared to the same quarter one year prior, going from $644.00 million to $774.00 million.
  • HAL's revenue growth trails the industry average of 20.5%. Since the same quarter one year prior, revenues rose by 10.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 31.88% and other important driving factors, this stock has surged by 45.46% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • HALLIBURTON CO has improved earnings per share by 31.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HALLIBURTON CO reported lower earnings of $2.37 versus $2.77 in the prior year. This year, the market expects an improvement in earnings ($4.05 versus $2.37).
  • Despite currently having a low debt-to-equity ratio of 0.54, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that HAL's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.73 is high and demonstrates strong liquidity.
  • You can view the full analysis from the report here: HAL Ratings Report

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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