Halliburton Company (HAL): A Bull Case Theory - InvestingChannel

Halliburton Company (HAL): A Bull Case Theory

We came across a bullish thesis on Halliburton Company (HAL) on stocks subreddit page by Buffet_fromTemu. In this article, we will summarize the bulls’ thesis on HAL. Halliburton Company’s share was trading at $27.81 as of Oct 23rd. HAL’s trailing and forward P/E were 9.24 and 7.70 respectively according to Yahoo Finance.

construction, drill, drilling, energy, equipment, exploration, fuel, gas, gasoline, holland, industrial, industry, maintenance, ocean, offshore, oil, petroleum, plant, platform, port, power, production, pump, refinery, rig, rotterdam, sea, sky, steel, technology, tower, well Copyright: 1971yes / 123RF Stock Photo

Halliburton provides a comprehensive array of services and products to the energy sector, particularly in oil and natural gas exploration, development, and production, operating in over 70 countries and serving both national and independent firms. The conviction in Halliburton stems from several scenarios that could enhance its profitability while benefiting from its current undervaluation. Firstly, if Trump fulfills his promises to boost drilling activities, Halliburton stands to gain significantly, as increased drilling directly correlates with its core business. Secondly, the ongoing conflict in the Middle East, particularly a potential war between Israel and Iran, could spike oil prices due to heightened risks and potential disruptions in oil fields. As Halliburton is entrenched in the oil sector, it is poised to capitalize on any price surges resulting from such geopolitical tensions.

Even if these scenarios do not materialize, Halliburton remains a solid investment, offering a dividend and trading below its intrinsic value. Analysts project that the company’s stock price will rise, with the lowest 52-week target significantly above its current valuation. Halliburton’s business is further supported by its major services, which include drilling, hydraulic fracturing, and well completion, ensuring a robust foundation.

Basically, the bullish thesis for Halliburton (HAL) centers on potential profits from increased drilling activity and geopolitical tensions, particularly in the Middle East. Halliburton presents a compelling investment opportunity, supported by multiple catalysts for growth, making it well-positioned for future profitability.

Halliburton Company is also not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held HAL at the end of the second quarter which was 38 in the previous quarter. While we acknowledge the risk and potential of HAL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an 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.

READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and 10 Best of Breed Stocks to Buy For The Third Quarter of 2024 According to Bank of America.

Disclosure: None. This article was originally published at Insider Monkey.

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