NEW YORK (TheStreet) -- Shares of Halliburton Co. (HAL) are up 0.54% to $71.31 after the major oilfield services provider said it expect higher margins in North America in the current quarter due to strong drilling activity, signaling an industry-wide recovery in the region after a two-year slump, Reuters reports.
Halliburton also raised its share repurchase program to $6 billion from $5 billion.
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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, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 3555.6% when compared to the same quarter one year prior, rising from -$18.00 million to $622.00 million.
- HAL's revenue growth trails the industry average of 20.5%. Since the same quarter one year prior, revenues slightly increased by 5.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 7400.00% and other important driving factors, this stock has surged by 59.37% 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.
- Net operating cash flow has significantly increased by 173.35% to $954.00 million when compared to the same quarter last year. In addition, HALLIBURTON CO has also vastly surpassed the industry average cash flow growth rate of -80.13%.
- HALLIBURTON CO reported significant earnings per share improvement 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 ($3.98 versus $2.37).
- You can view the full analysis from the report here: HAL Ratings Report
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