4. Halliburton Company (NYSE:HAL)
52 Week Range: $27.53 – $42.15
Current Share Price: $28.30
Number of Hedge Fund Holders: 41
Halliburton Company (NYSE:HAL) is one of the major players in the energy sector with operations running in around 70 countries. They provide various products and services to help energy companies maximize their production throughout the lifecycle of the reservoir. The company operates through two major segments including the Completion and Production Segment and the Drilling and Evaluation Segment.
The Completion and Production segment provides key services including cementing, and stimulation services, which include techniques like hydraulic fracturing (fracking) to increase the flow of oil and gas from the reservoir, artificial lift, and production enhancement. On the other hand, the Drilling and Evaluation deals with drilling fluids, wellbore placement, and reservoir evaluation.
Halliburton Company (NYSE:HAL) differentiates itself from its counterparts due to its focus on technology and data-driven platforms. Its portfolio of advanced technologies includes iCruise, iStar, and LOGIX, which are designed to enhance drilling operations and efficiency in the energy sector. Management noted that demand for advanced technology solutions is rising in the international market. The international revenue for the company contributed $3.4 billion during the second quarter of fiscal 2024, indicating an 8% increase year-over-year, with 10% growth in Latin America.
Overall, the second quarter of fiscal 2024, indicated robust financial performance. Revenue for the quarter ending June 30, 2024, was $5.8 billion representing a 0.6% increase year-over-year. Management was not only able to maintain strong operating margins of 18% during the quarter but also grew its net income by 16.23% year-over-year to $709 million in the second quarter of fiscal 2024.
Although the stock has been trading close to its 52-week low, however, 41 hedge funds held stakes in the company during Q2 2024, up from 38 hedge funds during the first quarter as per Insider Monkey’s database. Halliburton Company (NYSE:HAL) is the 4th best-falling stock to buy according to hedge funds.
Carillon Eagle Mid Cap Growth Fund stated the following regarding Halliburton Company (NYSE:HAL) in its fourth quarter 2023 investor letter:
“Halliburton Company (NYSE:HAL) provides equipment and services to the global energy industry. The company’s shares underperformed during the quarter, largely due to downward pressure on crude oil and natural gas prices. Despite this recent move, ongoing discipline among North American shale producers could continue supporting relatively healthy activity growth at current commodity price levels, which should provide stability to service providers such as Haliburton. The company is also poised to benefit from the ongoing, multi-year international and offshore upstream investment cycle that is less dependent on short-term swings in commodity prices.”
