Top-rated energy stock and IBD 50 component Halliburton (HAL) is a world leader in oil drilling services. It’s stellar technical ratings make it doubly attractive as it hovers near a buy zone.
The IBD 50 is an elite list of growth stocks, screened for superior fundamental and technical strength. These issues also show market leadership through price performance.
Houston-based Halliburton has operations in over 70 countries, providing oil and gas field services that include well drilling and construction, and shutting down depleted wells.
Its artificial lift services include submersible rod and cavity pumps that help with production at different depths, volumes, conditions and stages in the well’s life cycle. In addition to field services, it produces specialty chemicals that stimulate wells into production by reducing friction and scaling.
HAL shares just broke out of a cup-with-handle base with a buy point of 40.09. The breakaway gap added a bullish signal for the oil services giant. Shares are extended just above the buy zone, so watch for a pullback that may allow entry.
Halliburton has a perfect Composite Rating of 99 and strong Relative Strength Rating of 95.
In the third quarter, sales grew 39% to $5.3 billion while earnings of 60 cents per share marked 114% year-over-year growth. The energy stock has a steady record of double- and triple-digit earnings and sales growth over the past six quarters. It currently pays a 12-cent-per-share dividend, or 1.22% annually.
HAL stock just got an upgrade to outperform from Wolfe Research with a price target of 51. That marks 21% upside at current price levels.
The company is due to report Q4 2022 results on Jan. 24.
Top-Ranking Energy Stock
The Oil & Gas-Field Services group currently heads the list of 197 industry groups in the IBD database. Halliburton also ranks first among peers that include energy giants Schlumberger (SLB) and Tidewater (TDW).
Halliburton has made several recent acquisitions, including Summit ESP in 2017, increasing its artificial lift offerings. In 2018, it acquired Athlon Solutions and its specialty chemicals capabilities. Past acquisitions include Landmark Graphics in 1996 and PGS Data Management in 2001. PGS’s PetroBank provides storage and retrieval of data on production and exploration.
Mutual funds own 56% of HAL stock. Among exchange traded funds, the Invesco Dynamic Oil & Gas Services ETF (PXJ) and the SPDR S&P Oil & Gas Equipment and Services ETF (XES) hold shares of Halliburton.
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