Oil and gas company Halliburton’s (HAL) shares have rallied with rising oil prices over the past few months. The company has also secured several contract awards during this period. But the question is, is it wise to bet on the stock now even though the company's third-quarter revenue fell short of analysts’ expectations? Let’s discuss.Halliburton Company (NYSE:HAL) in Houston, Tex., is one of the world's largest providers of products and services to the energy industry. Soaring oil prices, higher cementing activity in the Middle East/Asia region, increased well intervention services in the Europe/Africa/CIS region, and improved drilling-related services have helped the company prosper.
The stock has gained 13.5% in price over the past month to close yesterday’s trading session at $25.12. However, it is currently trading 6.1% below its 52-week high of $26.75, which it hit on October 25, 2021. According to Refinitiv IBES, even though HAL’s third-quarter profit was in line with analysts' estimates, its $3.86 billion in revenue was slightly below consensus expectations of $3.91 billion.
Also, the U.S. Well Services, Inc. (USWS) filed a patent infringement lawsuit against HAL in April 2021, alleging that it infringed its electric fracking patents. Furthermore, Murry Gerber, a HAL board member, sold 44,590 shares last month. So, the stock’s near-term prospects look uncertain.