Halliburton Company (NYSE:HAL)

CAPS Rating: 4 out of 5

The Company provides a variety of services, products, maintenance, engineering, and construction to energy, industrial, and governmental customers.


Player Avatar TMF42 (95.27) Submitted: 10/25/2012 9:45:57 AM : Outperform Start Price: $32.02 HAL Score: -19.01

Haliburton is facing some headwinds with low natural gas prices, high guar prices, and tempering rig counts. However, the company has transformed itself into an integrated solutions provider -- almost like the IBM of the oil services industry -- where it becomes embedded in its customers' well sites. It's revenue is therefore sticky and that helps build lasting relationships. New business tends to center around unconventional wells which are much more service intensive and oil companies who are looking to avoid reputation risk due to heightened regulatory scrutiny will probably prefer to do business with fewer servicers for easier to track accountability. These secular trends play to HALs strengths.

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