Is Halliburton A Must-Own?
Posted: Jan 14, 2010 10:53 AM by Glenn Curtis
Despite all of the media attention that green technologies have received, and all of the concerns about globalwarming, Americans will be playing in the oil patch for many years to come. For this reason, investors should remain long-term bulls on both oil producers and oilfield services companies. With thatsaid, one of the companies that can do extremely well in time is Houston-based Halliburton (NYSE:HAL). In fact, last week it was reported that Goldman Sachs (NYSE:GS) placed the company onto its"conviction buy" list.
Why a Goldman Nod is Positive
Halliburton has several things in its favor. In the long-term, as populations in America and around the world rise, it is pretty reasonable to expect thatdemand for oil and gasoline will rise as well, which should be a big benefit for the company and its shareholders.
Halliburton has also been doing well on the earnings front, as data indicates ithas beaten estimates in all of the last four reported quarters. Its ability to deliver on the bottom line and beat expectations is probably one of the reasons why the share price is trading near its52-week highs. Management will want to continue this trend, and will be doing just about everything under its power to make sure that it continues. (For more on analyst expectations, be sure to readAnalyst Forecasts Spell Disaster For Some Stocks.)
Other Companies Involved In the Oil Patch Worth A Look
Schlumberger (NYSE:SLB), which is in the oilfield services business, shouldn't be overlooked.The company has beaten Wall Street expectations over the last three quarters, and can be another great play on future demand for oil around the world. Also, it is very hard to look beyond Exxon Mobil(NYSE:XOM). While the stock price has been fairly volatile over the last half decade or so, it will likely be a big winner longer-term in the United States.
Finally, Baker Hughes (NYSE:BHI) is...