Halliburton (HAL) continued the strong parade of earnings reports today from the oil services sector. I have been positive on the company for some time and I believe the stock in the early innings of a significant move up. Earnings easily beat expectations and Halliburton still offers great value at these entry points.
Positives from Halliburton's earnings report:
- Earnings came in at 80 cents a share beating estimates calling for 75 cents a share.
- Revenue came in at $7.23B, exceeding estimates of $6.95B.
- Halliburton has now averaged revenue growth of 32.9% over the past five quarters.
- Operating income, however, rose in the company's international markets including Latin America, Europe, Africa, the Middle East and Asia.
4 additional reasons Halliburton is a good long term bargain at under $31 a share:
- The stock is still cheap at under 9 times forward earnings, a discount to its five year average (14.4).
- The stock is selling near the bottom of its five year valuation range based on P/E, P/S, P/B and P/CF.
- The 22 analysts that cover the stock have a median price target of $42 a share on HAL, some 40% above its current stock price. S&P has a "Buy" rating and a 46 a share price target on Halliburton.
- The stock has good technical support at these levels (See Chart)