Halliburton Company (HAL) Fell Due to Declining Oil Prices and Economic Slowdown - InvestingChannel

Halliburton Company (HAL) Fell Due to Declining Oil Prices and Economic Slowdown

Aristotle Atlantic Partners, LLC, an investment advisor, released its “Core Equity Strategy” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The U.S. equity market continued to climb to new record highs, with the S&P 500 Index increasing by 5.89% during this time. Ten of the eleven sectors in the S&P 500 Index experienced gains, with Utilities and Real Estate at the forefront. Conversely, Energy and Information Technology were the least successful sectors. Aristotle Atlantic’s Core Equity strategy returned 3.19% gross of fees (3.09% net of fees) in the quarter underperforming the S&P 500 Index’s 5.89% total return. The relative underperformance was due to security selection. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Aristotle Core Equity Strategy highlighted stocks like Halliburton Company (NYSE:HAL), in the third quarter 2024 investor letter. Halliburton Company (NYSE:HAL) is a global provider of products and services to the energy industry. The one-month return of Halliburton Company (NYSE:HAL) was -5.97%, and its shares lost 23.56% of their value over the last 52 weeks. On November 6, 2024, Halliburton Company (NYSE:HAL) stock closed at $30.50 per share with a market capitalization of $25.518 billion.

Aristotle Core Equity Strategy stated the following regarding Halliburton Company (NYSE:HAL) in its Q3 2024 investor letter:

“Halliburton Company (NYSE:HAL) detracted from performance in the third quarter, as oil prices pulled back on increasing concerns about a slowdown in the U.S. and the global economy and continued headwinds from lower-than-expected growth in the Chinese economy. Halliburton reported second quarter earnings that indicated a weakening North American market for its services, and this was reflected in the company’s guide for the second half of the year, which showed the slower North American market continuing through the end of the year. We believe that 2024 will mark the trough for Halliburton’s North American market and that it should benefit from improving demand from a strengthening natural gas price and newly consolidated customers seeking to use the company’s high-quality product offerings. We are also anticipating better-than-expected growth from its international markets, including offshore. We believe that the current valuation continues to reflect a significantly more negative outlook for the North American market than we view for 2025.”

A drilling rig in the desert with an orange sunset in the background.

Halliburton Company (NYSE:HAL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Halliburton Company (NYSE:HAL) at the end of the second quarter which was 38 in the previous quarter. While we acknowledge the potential of Halliburton Company (NYSE:HAL) as an investment, our conviction lies in the belief that 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 as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Halliburton Company (NYSE:HAL) and shared best falling stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

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

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