Halliburton Witnesses An Increase in Share Value

The oil digging firm has shown increase in share price but received a hold rating from analysts due to more weaknesses

Halliburton has reportedly been doing well on the stock index given how the share price of the oil company has increased by around 3.19 percent, which has been recorded as a massive positive change to have occurred in the firm’s image on the index.

The share price has managed to reach around $42.01 and the rise has taken place due to the unexpected rise in the oil prices.The price of crude oil has also gone up by around 0.53 percent which has helped the price of one barrel reach around $52.81 whereas on the other hand, Brent crude oil is now being sold at a price of $57.26 per one barrel, presented in reports submitted by CNBC.com index.

Halliburton oil firm has been enjoying the high share price due to the crude oil in the United States was seen to shut down way before its usual time which raised massive concerns among the analysts and the investors in the company. The China and Greece crude market has shown to come at a standstill given how much the firm has come close to being bankrupt. The oil digging company has received a rating of ‘hold’ from the analysts of The Street along with a C+ rating which is being taken as quite a bearish factor by the analysts.

The Street analysts believe that the reason such a negative rating has been granted to the oil field services providing company is that the weaknesses that have emerged on the surface have shown to weigh more than the strengths. Moreover, the hold rating shows how the analysts cannot decide whether the oil firm deserves a positive rating or a negative one, as there is very less evidence which will help them know the true position of the firm and where it is headed in the stock market.

The strengths of Halliburton can be seen on how it is currently showing lot of positivity on the financial side where it seems to be stronger than before. However, there are some things that cannot be ignored which include the shaky net income of the firm which has made the analysts believe that negativity is up next in the game for the firm to face. As for the equity return, it is also expected that the oil company might go deeper in the dip for how low the profit margin has been in the previous weeks.