Halliburton releases third-quarter results October 23

What's Happening

Halliburton ( HAL ) is expected to release third-quarter numbers before the market open October 23. Analysts expect earnings of 38 cents per share, up from $0.01 during the same period last year. The stock has fallen 22.1% in value this year.

Technical Analysis

HAL was recently trading at $43.37, down $15.41 from its 12-month high and $5.19 above its 12-month low. Technical indicators for HAL are bearish with the stock showing signs of a possible trend reversal. The stock has recent support above $43.00 and has recent resistance below $45.90. Of the 23 analysts who cover the stock, 18 rate it a "strong buy", one rates it a "buy", three rate it a "hold", and one rates it a "strong sell". HAL gets a score of 31 from InvestorsObserver's Stock Score Report.

Analyst's Thoughts

HAL has trended lower through the majority of the year, but the stock has been erasing some of its previous losses on the last month as oil prices have firmed. The trended lower as oil prices weakened during the summer months, but recent oil strength has pushed shares higher, and the stock is likely to build on recent gains as long as oil prices remain steady or possibly move higher with OPEC considering a decision that would extend its current production limits. HAL has topped estimates for profits the last 12 quarters, with sales topping estimates for two straight quarters. The street has a $0.40 whisper number for the quarter, which suggests another beat. Another earnings beat should push shares higher, but the stock's future really will be determined by oil prices in general.

Stock Only Trade

With so much bearish sentiment in the stock right now, I would not look to set up a stock-only trade ahead of the upcoming report.

Bullish Trade

If you want to set up a bullish hedged trade on HAL, consider a December 37.50/40 bull-put credit spread for a 35-cent credit. That's a potential 16.3% return (106.1% annualized*) and the stock would have to fall 7.0% to cause a problem.

Bearish Trade

If you want to take a bearish stance on the stock at this time, consider a November 47/50 bear-call credit spread for a 45-cent credit. That's a potential 17.6% return (70.8% annualized*) and the stock would have to rise 9.4% to cause a problem.

Covered Call Trade

If you like the stock, but wish to lower your cost basis on a new position, you may want to consider a December $45.00 covered call. Buy HAL shares (typically 100 shares, scale as appropriate), while selling the December $45.00 call for a debit of $42.50 per share. The trade has a target assigned return of 5.8%, and a target annualized return of 38.7% (for comparison purposes only).

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Read Again Halliburton releases third-quarter results October 23 : http://ift.tt/2gsD7DW

Let's block ads! (Why?)