Halliburton (HAL): Reassessing Valuation After Leadership Shake-Up and Renewed Energy Sector Optimism
Halliburton (HAL) just gave investors a fresh reason to revisit the stock, pairing a reshuffled leadership team with a quietly improving share price backdrop as oil fundamentals and sentiment drift back in its favor.
See our latest analysis for Halliburton.
Those leadership moves are landing just as momentum improves, with a roughly 31 percent 90 day share price return and a solid 5 year total shareholder return suggesting sentiment is quietly rebuilding around Halliburton’s $28.45 stock.
If this leadership reshuffle has you thinking more broadly about energy exposure, it might be worth exploring aerospace and defense stocks as another pocket of the market where execution and contracts can really move the needle.
With shares trading modestly below Wall Street targets but at a steep discount to some intrinsic value estimates, investors now face a pivotal question: Is Halliburton still mispriced, or is the market already baking in the next leg of growth?
Most Popular Narrative Narrative: 6.1% Undervalued
Against a last close of $28.45, the most followed narrative pegs Halliburton’s fair value slightly higher, framing today’s price as a modest opportunity.
The company’s ongoing international diversification, growing faster in regions like Latin America, Africa, and the Middle East, and leveraging U.S.-style unconventional expertise creates a larger, more stable revenue base and reduces earnings cyclicality, supporting both top-line growth and improved earnings predictability.
Curious how flat revenues, rising margins, and a richer future earnings multiple can still point to upside from here? The full narrative unpacks the math behind that tension, from earnings power to share count, and explains why today’s discount rate still supports a higher intrinsic value.
Result: Fair Value of $30.29 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, intensifying decarbonization efforts and faster than expected renewable adoption could slow long term oilfield spending, challenging Halliburton’s earnings power and valuation re rating.
Find out about the key risks to this Halliburton narrative.
Build Your Own Halliburton Narrative
If you see the story differently or want to dig into the numbers yourself, you can spin up a custom Halliburton view in just a few minutes: Do it your way
A great starting point for your Halliburton research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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