HAL - Is Now the Time to Buy Oil Services Stocks?
The fascinating thing about investing in the oil sector is how many stocks in the space are directly influenced by oil prices. In other words, historically speaking, they tend to follow the direction of the price of oil. That's a consideration that springs to mind when looking at Halliburton 's (NYSE: HAL) latest set of earnings. The price of oil is now above $80 a barrel, and the oil services company's management gave a very bullish outlook for the industry. Is now the time to buy?
In a nutshell, the collapse in the price of oil from above $100 a barrel in 2014 to less than $40 a barrel at the start of 2016 caused a severe contraction in investment spending, which is now "starting to have an effect on the supply side," according to Halliburton CEO Jeff Miller on the earnings call .
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Is Now the Time to Buy Oil Services Stocks?