Halliburton
HAL
$34.73
+0.90%
Halliburton Company is a leading oilfield services provider, offering a comprehensive suite of products and services for the exploration, development, and production of oil and gas, including hydraulic fracturing, drilling, and completions. As North America's largest oilfield-services company by market share, it holds a dominant position in the hydraulic fracturing and completions market, which constitutes nearly half of its revenue, and also maintains strong positions in drilling and evaluation services. The current investor narrative centers on the company's ability to navigate volatile oil prices and geopolitical tensions, with recent news highlighting its strategic expansion into international markets like Indonesia and Argentina's Vaca Muerta shale, while also managing the impact of Middle East disruptions on global energy supply. The stock's performance is closely tied to crude oil price dynamics and North American drilling activity, making it a key barometer for the energy sector's cyclical trends.…
HAL
Halliburton
$34.73
Related headlines
Investment Opinion: Should I buy HAL Today?
We rate HAL as a Buy, supported by a consensus 'buy' rating and an average target price of $43.36, implying 26% upside. The thesis is that HAL's forward PE of 11.8x is undervalued relative to its growth potential, with analysts expecting EPS of $4.13 next year, a significant jump from current levels. The company's strong free cash flow of $1.678 billion and dividend yield of 2.44% provide a margin of safety, while international expansion into Indonesia and Argentina offers long-term growth catalysts.
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HAL 12-Month Price Forecast
The AI assessment leans bullish due to the attractive forward valuation and strong analyst support, but confidence is medium given the stagnant revenue and margin pressures. The key is whether HAL can deliver the expected earnings growth; if it does, the stock could re-rate higher, but if not, it may face de-rating. The stance would be upgraded to high confidence if revenue growth turns positive and margins expand, while a downgrade would occur if oil prices collapse or international expansion disappoints.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Halliburton's 12-month outlook, with a consensus price target around $43.36 and implied upside of +24.9% versus the current price.
Average Target
$43.36
0 analysts
Implied Upside
+24.9%
vs. current price
Analyst Count
—
covering this stock
Price Range
$29 - $53
Analyst target range
Halliburton is covered by 25 analysts, with a consensus recommendation of 'buy' and a mean recommendation score of 1.75 (where 1 is strong buy and 5 is sell). The average target price is $43.36, which implies an upside of +26.0% from the current price of $34.42. The distribution of ratings is not explicitly provided, but the consensus leaning bullish is supported by recent actions from firms like Piper Sandler (upgraded to Overweight), Barclays (upgraded to Overweight), and Citigroup (maintained Buy). The target price range spans from a low of $29.00 to a high of $53.00, with the high target suggesting a potential 54% upside, likely assuming a sustained recovery in oil prices and successful international expansion. The low target of $29.00 implies a downside of -15.7%, which could materialize if oil prices decline sharply or if geopolitical tensions disrupt operations. The wide spread between the low and high targets (24 points) indicates significant uncertainty in the market's outlook for the company, reflecting the cyclical nature of the oilfield services industry and its sensitivity to commodity price fluctuations.
Bulls vs Bears: HAL Investment Factors
Halliburton presents a mixed picture: strong analyst support, attractive forward valuation, and international growth potential are countered by stagnant revenue, margin pressure, and high sensitivity to oil price swings. The bull case currently holds slightly stronger evidence, given the 26% upside to the average target and the forward PE discount, but the bear case is reinforced by the recent 3-month underperformance and flat top-line growth. The central tension is whether HAL can translate its international expansion and expected earnings growth into actual revenue acceleration; if it fails, the stock could de-rate to the industry average PE, while success could drive it toward the high target of $53.
Bullish
- Strong Analyst Consensus and Upside: With 25 analysts covering HAL, the consensus is a 'buy' with a mean recommendation score of 1.75 (1=strong buy, 5=sell). The average target price of $43.36 implies a 26.0% upside from the current price of $34.42, while the high target of $53.00 suggests a 54% potential gain, reflecting strong conviction in the company's growth prospects.
- Attractive Forward Valuation: HAL trades at a forward PE of 11.8x, a 21% discount to the industry average of 15x, despite a trailing PE of 18.7x. This indicates the market expects significant earnings growth, with analysts estimating EPS of $4.13 for the next fiscal year, which would represent a substantial increase from the trailing EPS of $0.55 in Q1 2026.
- International Expansion Opportunities: Recent strategic deals in Indonesia and Argentina's Vaca Muerta shale are expected to drive long-term growth. The Indonesia deal to revive aging oil fields and the pivot to safer markets like Argentina highlight management's focus on diversifying revenue streams beyond North America, which could offset domestic cyclicality.
- Strong Free Cash Flow Generation: HAL generated $1.678 billion in trailing twelve-month free cash flow, supporting a healthy payout ratio of 45.1% and a dividend yield of 2.44%. This cash generation provides a buffer for shareholder returns and investments in growth initiatives, enhancing the stock's appeal for income-oriented investors.
Bearish
- Revenue Growth Stagnation: Q1 2026 revenue of $5.402 billion was essentially flat year-over-year (-0.28%), and the last four quarters have ranged narrowly between $5.402B and $5.657B, indicating a plateau. This lack of top-line growth could limit earnings expansion and justify a lower valuation multiple.
- High Trailing PE Relative to History: The trailing PE of 18.7x is above the historical low of 6.2x (Q4 2021) and near the middle of its range, but it represents a 25% premium to the industry average of 15x. If earnings growth fails to materialize as expected, the stock could face multiple compression.
- Sensitivity to Oil Price Volatility: HAL's fortunes are closely tied to crude oil prices and North American drilling activity. Recent news of a potential de-escalation in the Strait of Hormuz caused crude to plunge 14%, and such geopolitical shifts can rapidly reduce demand for oilfield services, impacting HAL's revenue and margins.
- Declining Profitability Metrics: Gross margin in Q1 2026 was 14.6%, down from 16.2% in Q1 2025, and operating margin fell to 10.2% from 12.6% year-over-year. This margin compression suggests pricing pressure or rising costs, which could erode profitability if not reversed.
HAL Technical Analysis
Halliburton's stock has exhibited a robust long-term uptrend over the past year, with a 1-year price change of +61.2%, significantly outperforming the S&P 500's +20.4% gain. As of August 14, 2026, the stock trades at $34.42, which is 79% of its 52-week range (low of $20.79, high of $43.59), indicating it is positioned in the upper half of its yearly range. This suggests that while the stock has experienced a substantial rally, it remains below its peak, reflecting a consolidation phase after a strong advance. The stock's beta of 0.753 implies it is less volatile than the broader market, which may appeal to risk-averse investors seeking energy exposure with lower volatility.
Beta
0.75
0.75x market volatility
Max Drawdown
-27.4%
Largest decline past year
52-Week Range
$21-$44
Price range past year
Annual Return
+64.4%
Cumulative gain past year
| Period | HAL Return | S&P 500 |
|---|---|---|
| 1m | -1.4% | +4.0% |
| 3m | -19.2% | +5.3% |
| 6m | -0.1% | +12.6% |
| 1y | +64.4% | +20.1% |
| ytd | +17.3% | +13.3% |
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HAL Fundamental Analysis
Halliburton's revenue trajectory has been relatively stable, with the most recent quarter (Q1 2026) reporting revenue of $5.402 billion, a slight year-over-year decline of -0.28% compared to Q1 2025's $5.417 billion. Over the past four quarters, revenue has ranged from $5.402 billion to $5.657 billion, indicating a plateau in growth, with Q4 2025 showing the highest at $5.657 billion. The company's revenue is driven by two main segments: Completion and Production (C&P) and Drilling and Evaluation (D&E), with C&P contributing $3.016 billion (55.8%) and D&E contributing $2.386 billion (44.2%) in the latest quarter. This stability suggests that while the company is not experiencing rapid growth, it is maintaining its market position in a mature industry, with potential for international expansion as highlighted by recent deals in Indonesia and Argentina.
Quarterly Revenue
$5.4B
2026-03
Revenue YoY Growth
-0.3%
YoY Comparison
Gross Margin
14.6%
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?
Given that Halliburton is profitable with a trailing net income of $461 million, the primary valuation metric selected is the price-to-earnings (PE) ratio. The trailing PE stands at 18.7x, while the forward PE is 11.8x, indicating that the market expects significant earnings growth in the coming year. This gap between trailing and forward PE suggests that analysts anticipate a substantial increase in earnings, likely driven by higher oil prices and increased drilling activity. Compared to the industry average PE of 15x (based on available data), Halliburton trades at a 25% premium on a trailing basis, but on a forward basis, it trades at a 21% discount, reflecting the market's optimistic growth expectations. Historically, Halliburton's PE has ranged from as low as 6.2x in Q4 2021 to as high as 290x in Q3 2025, with the current trailing PE of 18.7x sitting near the middle of this range, suggesting that the stock is not excessively overvalued or undervalued relative to its own history.
PE
18.7x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 6x~33x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
7.2x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks: HAL carries a debt-to-equity ratio of 0.78, which is moderate but not excessive, and interest expense of $104 million in Q1 2026 is manageable relative to operating income of $679 million. However, the company's net margin is thin at 5.8%, and gross margin has declined from 16.2% in Q1 2025 to 14.6% in Q1 2026, indicating cost pressures. Revenue concentration in North America (C&P segment contributes 55.8% of revenue) exposes HAL to regional drilling activity, which can be volatile. Additionally, the trailing PE of 18.7x is elevated relative to the industry average of 15x, implying that if earnings growth stalls, the stock could face de-rating.
FAQ
The key risks are: 1) Oil price volatility, as a 14% plunge in crude can directly impact demand for oilfield services; 2) Revenue stagnation, with Q1 2026 revenue flat YoY, limiting growth; 3) Margin compression, with gross margin down from 16.2% to 14.6% YoY; 4) Geopolitical risks, such as disruptions in the Middle East, which can both help and hurt; and 5) Execution risk in international expansion. The most severe risk is a prolonged oil price downturn, which could lead to a -39.6% decline to the 52-week low.
The 12-month forecast is bullish, with a base case target of $43.36 (26% upside) and a bull case target of $53 (54% upside), while the bear case could see the stock fall to $29 (-15.7%). The base case has a 50% probability, assuming stable oil prices and modest revenue growth. The bull case (30% probability) requires higher oil prices and successful international expansion, while the bear case (20% probability) would occur if oil prices crash. Analysts are optimistic, with a consensus 'buy' rating.
On a trailing basis, HAL is overvalued relative to its own history and peers, with a PE of 18.7x vs. the industry average of 15x. However, on a forward basis, it is undervalued, trading at 11.8x vs. 15x, implying the market expects significant earnings growth. This suggests that the market is pricing in a recovery in earnings, and if that materializes, the stock is attractively valued. The PEG ratio is negative due to expected earnings growth, which further supports the undervaluation case. Overall, HAL is fairly valued to slightly undervalued, depending on the earnings trajectory.
HAL is a good buy for investors seeking exposure to the energy sector with a favorable risk/reward profile. The stock trades at a forward PE of 11.8x, a 21% discount to the industry average, and analysts see a 26% upside to the average target of $43.36. However, the main downside risk is a decline in oil prices, which could push the stock down to the 52-week low of $20.79, a -39.6% loss. For investors with a 12-month horizon and a tolerance for cyclicality, HAL offers a compelling opportunity, especially given its strong free cash flow and dividend yield.
HAL is suitable for both, but it is better suited for long-term investors with a 3-5 year horizon who can ride out oil price cycles. The stock has a beta of 0.753, lower than the market, and pays a 2.44% dividend, providing some income. However, short-term trading is risky due to high volatility in oil prices and the stock's recent 3-month underperformance. For long-term investors, the forward PE of 11.8x and international growth opportunities offer potential for significant appreciation. A minimum holding period of 2-3 years is recommended to capture the expected earnings growth.