Halliburton Company
HAL
$0.00
-2.54%
Halliburton Company is a leading provider of oilfield services and equipment. It is North America's largest oilfield-services company, holding a dominant position in the hydraulic fracturing and completions market.
HAL
Halliburton Company
$0.00
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Investment Opinion: Should I buy HAL Today?
Based on a synthesis of the technical strength, solid fundamentals, and cyclical risks, the objective assessment leans toward a Hold rating for new capital. The stock's powerful uptrend and strong relative strength are compelling, but the current price near yearly highs, following such an extensive move, suggests limited near-term margin of safety. The moderate trailing P/E of 18.48 and better forward P/E of 14.44 are not excessively high, but they are priced for stability in oil markets. Investors with a high risk tolerance and a bullish view on sustained oil prices may find entry on pullbacks, but the cyclical nature of the business warrants caution.
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HAL 12-Month Price Forecast
The data presents a mixed picture: powerful momentum is countered by cyclical risks and a price near peak levels. The neutral stance reflects the balance between these forces, with medium confidence due to the lack of clear analyst consensus targets.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Halliburton Company's 12-month outlook, with a consensus price target around $0.00 and implied upside of — versus the current price.
Average Target
$0.00
6 analysts
Implied Upside
—
vs. current price
Analyst Count
6
covering this stock
Price Range
$0 - $0
Analyst target range
No sufficient analyst coverage available. The provided data includes recent analyst rating actions but does not contain a consensus target price or ratings distribution summary.
Bulls vs Bears: HAL Investment Factors
Halliburton exhibits strong momentum and a robust financial position, driven by its market leadership and recent operational successes. However, the stock's significant rally, coupled with the inherent cyclicality of the oilfield services sector and volatile quarterly earnings, presents clear risks. The investment thesis hinges on sustained high oil prices and capital expenditure from producers.
Bullish
- Strong Technical Uptrend: Stock up ~60% in 6 months, significantly outperforming S&P 500.
- Solid Financial Health: Strong current ratio of 2.04 and healthy free cash flow of $1.67B.
- Market Leadership: Dominant position in North American fracking and completions market.
- International Growth Catalysts: Recent major deal in Indonesia to revive aging oil fields.
Bearish
- Volatile Profitability: Net income swung from $18M in Q3 to $589M in Q4 2025.
- Cyclical Industry Risk: Performance heavily tied to volatile oil prices and E&P spending.
- Extended Valuation After Rally: Price near 52-week high, ~5% below peak, after major run-up.
- Moderate Revenue Growth: Q4 2025 revenue grew only 0.84% year-over-year.
HAL Technical Analysis
Overall Assessment: The stock has demonstrated a strong uptrend over the past six months, rising approximately 60% from its low near $21.97 in October 2025 to its recent high of $40.42 in March 2026. This performance significantly outpaces the broader market, as evidenced by a 6-month relative strength of +62.75 against the S&P 500.
Short-term Performance: Over the last month, the stock has gained 8.31%, again outperforming the S&P 500, which declined 5.25% over the same period. The three-month performance is even more robust, with a gain of 37.97%, compared to a 4.63% decline for the S&P 500.
Current Position: The current price of $38.99 sits near the upper end of its 52-week range of $18.72 to $41.18, approximately 5.3% below the 52-week high. The stock has pulled back slightly from its recent peak of $40.42, indicating potential consolidation after a significant rally.
Beta
0.75
0.75x market volatility
Max Drawdown
-27.0%
Largest decline past year
52-Week Range
$19-$41
Price range past year
Annual Return
+48.7%
Cumulative gain past year
| Period | HAL Return | S&P 500 |
|---|---|---|
| 1m | +5.6% | -3.7% |
| 3m | +34.5% | -4.1% |
| 6m | +56.3% | -2.1% |
| 1y | +48.7% | +16.1% |
| ytd | +28.4% | -3.9% |
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HAL Fundamental Analysis
Revenue & Profitability: Revenue for Q4 2025 was $5.66 billion, showing modest year-over-year growth of 0.84%. However, profitability has been volatile; Q4 2025 net income was $589 million (net margin of 10.4%), a significant recovery from a weak Q3 2025 net income of $18 million. The trailing twelve-month net margin is reported at 5.78%.
Financial Health: The company maintains a solid current ratio of 2.04, indicating good short-term liquidity. Its debt-to-equity ratio of 0.78 suggests a moderate level of leverage. Free cash flow over the trailing twelve months is a healthy $1.67 billion, providing financial flexibility.
Operational Efficiency: Return on Equity (ROE) stands at 12.26%, reflecting decent profitability on shareholder investment. Return on Assets (ROA) is 7.37%, indicating efficient use of company assets to generate earnings.
Quarterly Revenue
$5.7B
2025-12
Revenue YoY Growth
+0.00%
YoY Comparison
Gross Margin
+0.16%
Latest Quarter
Free Cash Flow
$1.7B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is HAL Overvalued?
Valuation Level: Given the company's positive net income, the trailing Price-to-Earnings (P/E) ratio of 18.48 is the primary valuation metric. This suggests the market is valuing the company's earnings at a moderate multiple.
Peer Comparison: Data not available for direct industry average comparisons. Other valuation metrics include a Price-to-Sales (P/S) ratio of 1.07 and an Enterprise Value-to-EBITDA (EV/EBITDA) ratio of 9.76. The forward P/E of 14.44 implies analysts expect earnings growth.
PE
18.5x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 6x~290x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
9.8x
Enterprise Value Multiple
Investment Risk Disclosure
The primary risk for Halliburton is its direct exposure to the capital expenditure cycles of oil and gas producers, which are notoriously volatile and driven by geopolitical events and commodity prices. While recent news highlights a supportive environment with rising oil prices, a sharp downturn could quickly reduce demand for its services. Financially, the company's earnings have shown significant quarter-to-quarter volatility, as seen in the swing from $18 million in Q3 to $589 million in Q4 2025, indicating underlying operational or market sensitivity. Furthermore, the stock's technical position is a risk; trading near its 52-week high after a 60% surge over six months leaves it vulnerable to a pullback or consolidation, especially if broader market sentiment sours.
FAQ
The key risks are cyclicality and commodity price exposure. HAL's revenue and profits are directly tied to oil producers' capital spending, which fluctuates with volatile oil prices. Earnings have been inconsistent, as shown by the drop to $18 million in Q3 2025. Additionally, the stock's technical position is a risk; after a massive rally, it is susceptible to profit-taking or a sector downturn.
A 12-month base case forecast suggests a trading range of $35 to $41, representing consolidation around current levels, assuming stable oil markets. The bull case, with a 30% probability, targets a range of $41.18 to $46, driven by higher oil prices and execution on growth deals. The bear case, with a 20% probability, sees a pullback to the $28-$32 range if oil prices fall sharply.
Based on the provided data, HAL appears fairly valued to slightly fully valued. The trailing P/E of 18.48 is moderate, and the forward P/E of 14.44 suggests the market is pricing in earnings growth. However, the Price/Sales ratio of 1.07 and EV/EBITDA of 9.76 do not scream undervaluation. The primary concern is that the stock price of $38.99 is just 5.3% below its 52-week high, leaving little margin for error.
HAL presents a nuanced case. It is not an unequivocal buy at current levels after its 60% six-month rally. The stock shows strong momentum and has a reasonable forward P/E of 14.44, but it is trading near its 52-week high. It could be a good buy for investors with a high conviction on sustained high oil prices, but others may prefer to wait for a pullback to reduce entry risk.
HAL is more suitable for medium-to-long-term investors who can tolerate the inherent volatility of the energy cycle. Short-term trading is risky due to the stock's sensitivity to daily oil price moves and its extended technical position after a large rally. Long-term holders can benefit from the company's market dominance and cyclical recoveries, but must be prepared for significant price swings along the way.