The Case for and Against Halliburton Company (HAL)

Halliburton Company (HAL) is an interesting player in the Basic Materials space, with a focus on Oil & Gas Equipment & Services. The stock has been active on the tape, currently trading at $46.10, down from yesterday’s close by -1.75%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Halliburton Company (HAL) currently trades with a market capitalization of $40.25 Billion. That value represents a market adjusting for revenues that have been growing by 47.72 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $1.1 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.44 on a per share basis this quarter. Perhaps, that suggests something about why 0.50% of the outstanding share supply is held by institutional investors.

Technical Analysis

It’s important to check the technicals to get a sense of how HAL has been acting. Looking at the stock’s movement on the chart, Halliburton Company recorded a 52-week high of $57.86. It is now trading 11.76% off that level. The stock is trading $50.09 its 50-day moving average by 3.99%. The stock carved out a 52-week low down at $38.18.

In recent action, Halliburton Company (HAL) has made a move of -3.80% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 16.68, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 2.50% with $872.65 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of HAL.

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