What To Expect From Halliburton’s Stock?

Halliburton stock (NYSE: HAL), an energy company organized into the exploration, development, and production of oil and natural gas, is scheduled to report its fiscal second-quarter results on Wednesday, July 19. We expect HAL’s stock to trade higher due to revenues and earnings beating expectations marginally in its second quarter. Halliburton
HAL
generated significant returns in 2022 and we do not expect another stellar year in 2023, but rather a moderate one as commodity prices were surprisingly lower than expected this year. HAL also did not generate any free cash flow in Q1 2023, showing that the business has cooled down from the 2022 highs. However, oil prices have jumped over the last week – boosted by a falling U.S. dollar and supply cuts by the world’s biggest oil exporters (Saudi Arabia and Russia). A report released by OPEC also kept an optimistic outlook for world oil demand despite weak economic growth. It raised its growth forecast for 2023 and predicted only a slight slowdown in 2024, with China and India expected to keep driving the expansion in fuel use.

Halliburton has a strong position to benefit from high crude oil prices. The growing tight supplies due to geopolitical uncertainty and the soaring demand from the reopening of China’s economy could likely bode well for energy prices by the end of 2023. The activity outlook abroad remains robust, especially in the Middle East, offshore, and North American markets.