Will Halliburton’s Stock Outperform Against Industry Headwinds?

T = Trends Support the Industry in which the Company Operates

Looking at Halliburton’s performance on the stock chart, its debt situation, and its operational performance relative to peers it’s pretty clear to see that there is still something to be desired. The company consistently looks like a second-best alternative to Schlumberger, which is the only company in this group to have produced stock price growth over the last year.

The company reported third-quarter revenue gains of 8.6 percent year over year and income from continuing operations of $0.65 per share, a 12 percent year-over-year drop. Revenue growth over the past four quarters has alternated between gains and losses, but has been positive for the past two years. Full-year earnings estimates of $3.36 per year predict a third consecutive year of growth for 2012.

In the company’s earnings call for the third-quarter, CEO David Lesar pointed at tough economic headwinds spearheaded by troubles in Europe and slow growth in China and Brazil. Tension in the Middle East could also negatively impact the company’s operations.

Conclusion

Analysts hold a mean target on Halliburton’s stock of $42.23 per share, about a 27.5 percent upside on its December 3 closing price. Consensus aggregates around around the stock suggests that even though Schlumberger looks like a stronger alternative, Halliburton is still set to OUTPERFORM in the market.

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