NEW YORK (TheStreet) -- Shares of Halliburton Co. (HAL - Get Report) are lower by 1.34% to $38.94 in early afternoon trading on Thursday, as some oil and energy related stocks continue yesterday's decline as a result of the drop in U.S. oil prices.
Crude oil (WTI) is falling by 1.44% to $43.81 per barrel this afternoon. On Wednesday both U.S. oil and Brent crude were in the red. Just before one o'clock Brent crude was up by 0.08% to $48.51 per barrel.
U.S. prices are continuing to drop following Wednesday's economic data showing crude stockpiles increased to their highest levels in close to 80 years, the Wall Street Journal reports.
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"What's really shocking is that U.S. production still continues to increase despite low crude-oil prices. Without a drop in U.S. crude production, it's going to be an uphill battle for oil bulls," analysts from Phillip Futures told the Journal.
Other oil related stocks falling today include Key Energy Services (KEY - Get Report) , down by 5.56% to $1.62, Helmerich & Payne (HP - Get Report) , lower by 5.43% to $56.43, and Precision Drilling Corp. (PDS - Get Report) down by 3.31% to $4.67 today.
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