Since late April, nine analysts have either maintained or raised their ratings on Halliburton stock to the equivalent of Buy or Strong Buy. As is the case with Baker Hughes, drilling activity has picked up, and the company’s order book for well completions rose by 40% in the first quarter.
Of 28 analysts covering the company, 27 have a Buy or Strong Buy rating, and the other one rates the shares a Hold. At a price of around $37.00 a share, the upside potential based on a median price target of $46.50 is about 25.7%. At the high target of $58.00, the implied gain is about 56.8%.
Second-quarter revenue is forecast to come in at $5.86 billion. That would be up about 3.2% sequentially and by 15.6% year over year. Adjusted EPS are forecast at $0.75, up 3.7% sequentially and 53.1% higher year over year. For the full 2023 fiscal year, analysts expect EPS of $3.07, up 42.6%, on sales of $23.67 billion, up 16.6%.
Halliburton stock trades at 12.0 times expected 2023 EPS, 10.4 times estimated 2024 earnings of $3.54 and 9.5 times estimated 2025 earnings of $3.89 per share. The stock’s 52-week range is $23.30 to $43.42, and the company pays an annual dividend of $0.64 (yield of 1.73%). Halliburton’s total shareholder return for the past year was 37.21%.
U.S. Bancorp
U.S. Bancorp (NYSE: USB) is the country’s largest regional bank (and the fifth largest of all banks) and operates more than 2,200 locations in the West and Midwest. The bank’s share price has dropped by more than 20% in the past 12 months, including a 25% drop over the past six months.
That drop was due, of course, to the collapse of three other regional banks and the fallout from Berkshire Hathaway’s dumping all its shares in the bank. U.S. Bancorp expects to complete the integration of recently acquired Union Bank by the end of the year. That is forecast to add 8% to the company’s earnings.
Analysts are being cautious and have adopted a wait-and-see attitude on the stock, with 12 of 26 having a Hold rating and 13 with Buy or Strong Buy ratings. At a share price of around $35.00, the upside potential based on a median price target of $42.00 is 20%. At the high target of $70.00, the upside potential is 100%.
The consensus second-quarter revenue estimate is $7.18 billion, up 0.5% sequentially and by 20,0% year over year. Adjusted EPS are estimated to come in at $1.10, up 5.6% sequentially and 9.0% higher year over year. Analysts are looking for full-year revenue of $28.74 billion, up 18.9%, and EPS of $4.48, up 21.6%.
The stock trades at 7.9 times expected 2023 EPS, 7.7 times estimated 2024 earnings of $4.60 and 7.7 times estimated 2025 earnings of $4.59 per share. The 52-week range is $27.27 to $59.95. U.S. Bancorp pays an annual dividend of $1.92 (yield of 5.43%). Total return for the past year was negative 15.97%.
Originally published at 24/7 Wall St.
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