Dave Lesar, CEO of oil services giant Halliburton said on Wednesday’s earnings conference call that they see a turn in oil drilling. The company reported its sixth consecutive quarter of declines in revenues and earnings, but analysts estimate that 2017 earnings per share will come in at $ .90 up from a loss of $ .23 this year.
Halliburton’s stock currently trades near $43, which is 47 times the 2017 earnings consensus street estimate. In our opinion, this is a prime example of how an industry turn does not necessarily make a stock in that industry a “buy”. Halliburton trading at 47x the 2017 estimate still is not cheap. For the full story on Halliburton, click here.
