1. Halliburton (NYSE:HAL)
52 Week Range: $27.53 – $43.85
Current Share Price: $28.99
Number of Hedge Fund Holders: 41
Market Capitalization as of September 30: $25.6 Billion
Halliburton (NYSE:HAL) is one of the best blue-chip stocks to buy at 52-week lows as a provider of crucial oilfield services. The company provides products and services to the energy industry worldwide to support oil and natural gas exploration, development, and production.
The stock has closed to 52-week lows as inflation and aggressive interest rate hikes dampened the energy market outlook. The high interest rates made it challenging for some companies to ramp up oil and gas exploration and production from which Halliburton (NYSE:HAL) generates most of its revenues.
The company delivered mixed second-quarter results, with revenues almost flat at $5.83 billion as earnings per share totaled $0.8. It declared a quarterly dividend of $0.17 per share for the third quarter of 2024, demonstrating its commitment to returning value to shareholders
Nevertheless, Halliburton (NYSE:HAL) delivered a return to equity of 29.97%, which indicated efficient utilization of shareholder investments. Additionally, the company ended with a net margin of 11.61%, affirming solid profitability, effective cost management, and maximization.
Halliburton (NYSE:HAL) is actively developing new technologies and investing in them to increase operational effectiveness. This includes implementing artificial intelligence (A.I.) applications and digital solutions, particularly for well-completion and production enhancement. This fits in with the energy industry’s broader trend toward automation and digitalization.
Acknowledging the increasing need for sustainable energy solutions, the company is also venturing into the renewable energy domain. Halliburton is using its knowledge in geothermal energy and other fields to establish itself in this rapidly expanding market. This calculated action shows a dedication to diversification and an understanding of the energy industry’s trend towards sustainability.
While trading at a price-to-earnings multiple of 7, Halliburton (NYSE:HAL) offers a 2.37% dividend yield, ideal for generating passive income. By the end of the second quarter, 41 hedge funds held positions in the company’s stock, with their collective stakes valued at $507.70 million. Point72 Asset Management is the largest shareholder, owning shares worth $103.36 million as of June 30.
While we acknowledge the potential of HAL, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than HAL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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