What's Driving Halliburton Co's Surprising 16% Stock Rally?

Over the past week, Halliburton Co (HAL, Financial) has seen a 3.07% gain in its stock price, bringing it to a current price of $41.06. This recent performance is part of a larger trend, with the company's stock price experiencing a 15.67% gain over the past three months. This surge has brought the company's market cap to $36.89 billion. The stock's GF Value, a measure of intrinsic value defined by GuruFocus.com, is currently $38.15, up from $36.13 three months ago. Despite these changes, the stock's GF Valuation remains 'Fairly Valued', the same as it was three months ago.

Company Overview: Halliburton Co

Halliburton Co is a leading player in the Oil & Gas industry. The company has established its expertise across various business lines, including completion fluids, wireline services, cementing, and more. As the number-one pressure pumper in North America, Halliburton has been a leading innovator in hydraulic fracturing over the past two decades. 1711400503436378112.png

Profitability Analysis

With a Profitability Rank of 6/10, Halliburton Co demonstrates a strong profitability potential. The company's Operating Margin of 17.06% is better than 64.26% of 982 companies in the same industry. Furthermore, the company's ROE, ROA, and ROIC, which are calculated as Net Income divided by its average Total Stockholders Equity, Total Assets, and capital invested in its business respectively, are better than a significant percentage of companies in the same industry. Over the past 10 years, the company has maintained profitability for 5 years, which is better than 50.68% of 953 companies. 1711400529747247104.png

Growth Prospects

Despite a Growth Rank of 1/10, Halliburton Co has shown promising growth in terms of revenue and profitability. The company's 3-year and 5-year revenue growth rate per share are better than a significant percentage of companies in the same industry. Looking ahead, the company's future total revenue growth rate and EPS without NRI growth rate are also better than a significant percentage of companies in the same industry. 1711400547786948608.png

Major Stock Holders

Barrow, Hanley, Mewhinney & Strauss is the top holder of Halliburton Co's stock, holding 13,558,702 shares, which accounts for 1.51% of the company's stock. Richard Pzena (Trades, Portfolio) holds the second-largest number of shares, with 7,407,122 shares, accounting for 0.82% of the company's stock. HOTCHKIS & WILEY holds the third-largest number of shares, with 4,792,183 shares, accounting for 0.53% of the company's stock.

Competitive Landscape

Halliburton Co faces stiff competition from other companies in the Oil & Gas industry. Baker Hughes Co (BKR, Financial) has a market cap of $34.97 billion, TechnipFMC PLC (FTI, Financial) has a market cap of $8.73 billion, and NOV Inc (NOV, Financial) has a market cap of $7.85 billion.

Conclusion

In conclusion, Halliburton Co's stock performance, profitability, growth, holders, and competitors all paint a picture of a company that is well-positioned in the market. Despite a low Growth Rank, the company has shown promising growth in terms of revenue and profitability. With a Profitability Rank of 6/10, the company demonstrates strong profitability potential. The company's major stock holders and competitors further underscore its position in the market. As such, Halliburton Co's current position and future prospects in the market appear promising.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.