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Opinions Gavin Graham
Halliburton CoHALCOMMENTMar 17, 2014
Gavin GrahamStock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Premium contentRecently reported operating income was up 33%, despite their exit from Russia in 2022. Cash reserves are stable, while debt is retired and shares bought back. It trades at 13x earnings, 3.5x book (a little expensive), and supports a robust 30% ROE. Its dividend is backed by a payout ratio under 25% of cash flow. We recommend setting a stop-loss at $28, looking to achieve $47 -- upside potential of 28%. Yield 1.7%
(Analysts’ price target is $47.39)
Gordon ReidGordon Reid(A Top Pick November 10/17 - Down 5%.) Continuous to like it. They have had some issues similar to what Canadian companies have in terms of not being able to get the product out. Not enough pipelines. It is happening in the Permian Basin, in Texas. Easier to solve there. He is expecting $2 a share in 2018 in terms of earnings and $3 next year and the stock is going to reflect that.
Gordon ReidAn Oil/gas service company? This has done well and broken above its 200-day moving average. It’s broken through that and is now moving higher. The question is, where are oil prices going. If oil prices go too high or move too quickly, then people are going to turn on the taps and oil producers will come back online. On the other hand, they could start doing other things with the money, which would give room for oil prices to move higher. Finds it hard to believe oil will be back to $100, particularly with technology we are seeing these days.
The oil service stocks are starting to show signs of seasonal strength. The seasonal period of strength is from the middle of December right through until the end of April. Technically, the stock completed a reverse head and shoulders pattern, implying upside. Dividend yield of 1.5%. (Analysts' price target is $54.)
Wide range of oil field services and has been doing pretty well. This should continue to be a major beneficiary and you are seeing a fair amount of capital expenditure by the majors. Not especially expensive for a stock with as good a pedigree as it has. If you are going to pay high teens for anyone, somebody with the geographical breadth and the range of different services offered that this one has, is probably a better bet than some of the other stuff that is selling in the high teens or mid-$20 in the US market.