Halliburton
HAL
$32.36
+1.47%
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, operating primarily in the Energy sector. As North America's largest oilfield services company by market share, Halliburton holds a dominant position in hydraulic fracturing and completions, which constitutes nearly half of its revenue, and maintains strong capabilities in drilling and evaluation services. The current investor narrative centers on the company's strategic pivot toward international growth, highlighted by a major Indonesia deal to revive aging oil fields, while navigating volatile oil prices and geopolitical tensions that impact North American drilling activity. Additionally, the stock has experienced significant price swings, with a 44% gain over the past year but a sharp 23% decline over the last three months, reflecting market concerns about near-term demand and pricing pressures.…
HAL
Halliburton
$32.36
Related headlines
Investment Opinion: Should I buy HAL Today?
Based on the synthesis, I rate Halliburton a Hold. The stock offers a compelling forward valuation (11.1x PE) and strong analyst support (average target $43.52, implying 35% upside), but the recent 23% decline and revenue stagnation warrant caution. The consensus 'Buy' rating is tempered by the wide target range and cyclical risks.
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HAL 12-Month Price Forecast
The AI assessment is neutral with medium confidence. The valuation is attractive on a forward basis, but the lack of revenue growth and negative PEG ratio temper enthusiasm. The stock's performance is highly dependent on oil prices, which are unpredictable. If oil prices stabilize and international growth accelerates, the stance would upgrade to bullish; if oil prices decline further or revenue growth turns negative, it would downgrade to bearish.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Halliburton's 12-month outlook, with a consensus price target around $43.52 and implied upside of +34.5% versus the current price.
Average Target
$43.52
0 analysts
Implied Upside
+34.5%
vs. current price
Analyst Count
—
covering this stock
Price Range
$29 - $53
Analyst target range
The target price range spans from a low of $29.00 to a high of $53.00, with the average at $43.52. The wide spread of $24.00 (83% of the average) indicates high uncertainty about Halliburton's future performance. The low target of $29.00 suggests a scenario of continued margin compression and weak North American activity, while the high target of $53.00 assumes a robust recovery in oil prices and successful international expansion. The recent upgrades from Piper Sandler and Barclays, along with the consensus Buy, signal that analysts see the current pullback as a buying opportunity, but the wide range underscores the cyclical risks inherent in the oilfield services sector.
Bulls vs Bears: HAL Investment Factors
Halliburton presents a classic cyclical investment dilemma. The bull case rests on a compelling forward valuation (11.1x PE), strong analyst support (35% upside to average target), and strategic international expansion, while the bear case is driven by stagnant revenue, negative PEG, and extreme sensitivity to oil price swings. Currently, the bearish evidence is slightly stronger given the recent 23% stock decline and revenue plateau, but the wide analyst target range underscores that the outcome hinges on oil price direction and international execution. The single most important tension is whether the forward earnings growth implied by the 11.1x PE materializes—if it does, the stock is undervalued; if not, the current price may still be too high.
Bullish
- Forward PE at 11.1x signals earnings growth: The forward PE of 11.08x is 40.8% below the trailing PE of 18.72x, implying the market expects a substantial earnings rebound. With analyst consensus EPS of $4.13 for the next fiscal year, this suggests a forward earnings yield of over 9%, which is attractive for a cyclical leader.
- International expansion via Indonesia deal: Halliburton's major Indonesia deal to revive aging oil fields, announced in February 2026, provides a concrete avenue for international growth. This aligns with the strategic pivot away from mature North American markets and could diversify revenue streams, reducing dependence on domestic drilling activity.
- Strong analyst consensus with 35% upside: With 25 analysts covering the stock, the consensus rating is 'Buy' (mean score 1.75). The average price target of $43.52 implies a 35.0% upside from the current price of $32.25, while the high target of $53.00 suggests even greater potential if oil prices recover strongly.
- Solid balance sheet with low leverage: The debt-to-equity ratio of 0.78 and current ratio of 2.04 indicate a healthy balance sheet. This financial stability provides flexibility to weather cyclical downturns and fund international expansion without excessive risk.
Bearish
- Revenue stagnation with -0.28% YoY decline: Q1 2026 revenue of $5.402 billion declined 0.28% year-over-year, and quarterly revenue has plateaued between $5.4B and $5.7B. This indicates a mature market with limited growth, making the stock highly sensitive to oil price fluctuations.
- Sharp 23% decline in three months: The stock has fallen 22.6% over the last three months, underperforming the S&P 500 by 26.2 percentage points. This reflects market concerns about near-term demand and pricing pressures, and the current price sits at only 51.2% of the 52-week range.
- Negative PEG ratio signals earnings decline: The PEG ratio of -0.40 is negative, indicating that analysts expect earnings to decline in the near term. This is unusual and suggests cyclical pressures may persist, potentially undermining the forward PE's implied growth.
- High uncertainty in analyst targets: The spread between the low target of $29.00 and high target of $53.00 is $24.00, or 83% of the average target. This wide dispersion reflects deep uncertainty about oil prices, international expansion success, and North American activity levels.
HAL Technical Analysis
Halliburton's stock has exhibited a volatile but overall upward trend over the past year, with a 1-year price change of +43.97%, significantly outperforming the S&P 500's 18.19% gain. However, the current price of $32.25 sits at 51.2% of the 52-week range (low of $20.39, high of $43.59), indicating a substantial pullback from the highs. This positioning suggests the stock is in a corrective phase after a strong rally, with the price now closer to the midpoint of its range, reflecting a balance between bullish momentum and profit-taking pressures.
Beta
0.75
0.75x market volatility
Max Drawdown
-27.4%
Largest decline past year
52-Week Range
$20-$44
Price range past year
Annual Return
+49.3%
Cumulative gain past year
| Period | HAL Return | S&P 500 |
|---|---|---|
| 1m | -1.8% | +3.6% |
| 3m | -19.9% | +5.1% |
| 6m | -4.4% | +13.8% |
| 1y | +49.3% | +22.2% |
| ytd | +9.3% | +13.1% |
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HAL Fundamental Analysis
Halliburton's revenue has been relatively stable, with the most recent quarter (Q1 2026) reporting $5.402 billion, a slight YoY decline of -0.28% from $5.417 billion in Q1 2025. Over the past year, quarterly revenue has ranged from $5.402 billion to $5.657 billion, indicating a plateau in growth, with the Q4 2025 quarter showing the highest revenue at $5.657 billion. The company's revenue is driven by two segments: Completion and Production ($3.016 billion) and Drilling and Evaluation ($2.386 billion), with the former being the larger contributor. This stagnation in revenue suggests a mature market environment, with growth dependent on international expansion and market share gains.
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 Halliburton's positive net income, the PE ratio is the primary valuation metric. The trailing PE is 18.72x, while the forward PE is 11.08x, indicating that the market expects significant earnings growth, with the forward multiple implying a 40.8% discount to trailing earnings. This gap suggests that analysts anticipate a substantial improvement in profitability, likely driven by cost efficiencies and international growth. The PEG ratio is negative at -0.40, which is unusual and reflects the market's expectation of declining earnings in the near term, possibly due to cyclical pressures in the oilfield services industry.
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 and operational risks are moderate but notable. Halliburton's revenue has been flat, with Q1 2026 revenue of $5.402 billion down 0.28% YoY, and the negative PEG ratio (-0.40) suggests near-term earnings declines. The company's net margin is thin at 5.78%, and gross margin has compressed to 14.62% in Q1 2026 from 18.29% in Q4 2024, indicating pricing pressure. However, the balance sheet is solid with a debt-to-equity ratio of 0.78 and current ratio of 2.04, providing a cushion. Free cash flow of $1.678 billion covers the dividend, but the payout ratio of 45.1% leaves limited room for increased returns if cash flow weakens.
FAQ
The key risks are: 1) Oil price volatility, as evidenced by the 14% crude plunge when the Strait of Hormuz reopened, which directly impacts drilling activity; 2) Revenue stagnation, with Q1 2026 revenue down 0.28% YoY, limiting growth; 3) Margin compression, with gross margin falling to 14.62% from 18.29% a year ago; 4) Execution risk on international expansion, such as the Indonesia deal, which may not deliver expected returns. The most severe risk is a prolonged oil price downturn, which could lead to a 36.8% loss to the 52-week low.
The 12-month forecast is mixed. The bull case (30% probability) targets $43.52-$53.00, driven by oil price recovery and international growth. The base case (45% probability) targets $35.00-$43.52, assuming stable oil prices and flat revenue. The bear case (25% probability) targets $20.39-$29.00, if oil prices crash and revenue declines. The most likely scenario is the base case, with the stock reaching the average analyst target of $43.52, implying a 35% upside. However, the wide range of analyst targets reflects high uncertainty.
HAL is undervalued on a forward basis, with a forward PE of 11.08x versus the trailing PE of 18.72x, implying the market expects significant earnings growth. The PS ratio of 1.07x is below the industry average, and the EV/EBITDA of 7.19x is reasonable. However, the negative PEG ratio (-0.40) suggests that earnings are expected to decline in the near term, which could make the stock appear cheap for a reason. Compared to its own history, the current valuation is below the 5-year average, indicating a potential value opportunity if the company can execute on its international strategy.
HAL is a good buy for investors with a high risk tolerance and a 12-month horizon, given the 35% upside to the average analyst target of $43.52. However, the stock is not suitable for conservative investors due to its cyclicality and sensitivity to oil prices. The forward PE of 11.08x suggests undervaluation if earnings grow as expected, but the negative PEG ratio (-0.40) warns of near-term earnings declines. The biggest downside risk is a 36.8% drop to the 52-week low of $20.39 if oil prices crash. Overall, it's a buy for those who believe oil prices will stabilize and international growth will materialize, but a hold for those seeking stability.
HAL is more suitable for long-term investment (3-5 years) due to its cyclical nature and the potential for international growth to play out. The stock has a beta of 0.725, which is lower than the market, but it is still highly volatile, as seen in the 23% decline over three months. Short-term trading is risky due to unpredictable oil price swings. The company pays a modest dividend (2.44% yield), providing some income while waiting for growth. A minimum holding period of 3 years is recommended to ride out the commodity cycle and allow international expansion to contribute.