NEW YORK (TheStreet) -- Shares of Halliburton Co. (HAL) - Get Halliburton Company (HAL) Report closed higher by 1.06% at $39.99 after oil prices soared on Friday, achieving their biggest daily percentage gain in two and a half years, yet still wrapped up January with a big loss, Marketwatch reports.
West Texas Intermediate rose 7.32% to $47.79 at 4:28 p.m. in New York. Brent was up 6.96% to $52.55.
Analysts said factors behind oil's jump on Friday included news of a huge drop in U.S. rig counts as producers respond to oversupply, as well as short covering on the last day of the month, Marketwatch said.
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The number of U.S. oil-drilling rigs dropped by 94 in the past week, representing the largest one-week decrease since at least 1987, according to data out Friday from oilfield-services firm Baker Hughes (BHI) .
Some "short covering was expected and the rig count number sparked the rally late," Price Futures Group analyst Phil Flynn told Reuters.
For the week, the U.S. oil benchmark gained 5.8%, leaving it down 9.4% for the month after it earlier showed a double-digit percentage decline for January, Marketwatch noted, adding WTI has dropped for seven months in a row, and it remains off 55% from its June peak.
Separately, TheStreet Ratings team rates HALLIBURTON CO as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HALLIBURTON CO (HAL) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. 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:
- HAL's revenue growth has slightly outpaced the industry average of 7.0%. Since the same quarter one year prior, revenues rose by 14.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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 13.6% when compared to the same quarter one year prior, going from $793.00 million to $901.00 million.
- Despite currently having a low debt-to-equity ratio of 0.48, 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 1.68 is high and demonstrates strong liquidity.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Energy Equipment & Services industry and the overall market on the basis of return on equity, HALLIBURTON CO has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- You can view the full analysis from the report here: HAL Ratings Report