Here's Why Halliburton Company's Stock Sold Off in October
Halliburton Company (NYSE: HAL) slumped in October, falling double digits at one point before ending the month down 7.2%. That decline came despite an analyst upgrade and the company's expectation-crushing third-quarter results. Instead, investors focused on the oil-field service giant's outlook, where it warned of a slowdown in the coming quarter.
Halliburton initially started the month on a positive note after analysts at Deutsche Bank said that the fracking giant was one of its three best long-term ideas among oil service stocks, along with Patterson-UTI Energy (NASDAQ: PTEN) and C&J Energy Services (NYSE: CJ). Driving that view is the fact that Halliburton, Patterson-UTI Energy, and C&J Energy Services all have exposure to the U.S. pressure pumping market, which means these companies perform the actual fracking by pumping fluids under high pressure into a well to create fractures in the rock so oil and gas can flow through. In the bank's view, pressure pumping prices will increase as the industry completes more wells, which should boost the profitability of Halliburton, Patterson, and C&J.
Image source: Getty Images.
Source: Fool.com
Halliburton Co. Aktie
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