Three Oil Field Services Stocks at All-Time Highs

Energy

Published: June 21, 2014 9:35 am

Last Updated: April 28, 2020 7:40 am

The world’s three largest oil field services companies closed on Friday at or near all-time high stock prices. And this is happening despite intense competition in North America, where services like pressure-pumping have seen margins evaporate.

Schlumberger Ltd. (NYSE: SLB), with a market cap of around $142 billion, is the largest of the oil field services companies and gets the smallest portion of its revenues from North America. About 30% of the company’s revenues come from operations in the United States and Canada. Schlumberger is also heavily exposed in Iraq and gets about a quarter of its revenues from its Middle East and Asia division. The stock closed at $108.83 on Friday, and the consensus analyst price target of around $119.30 indicates a potential upside of about 9.6%. Shares are up 52% in the past 12 months and shares have reached an all-time high.

Halliburton Co. (NYSE: HAL) shares are up about 40% since the beginning of the year and more than 63% over the past 12 months. North America and Latin America account for nearly two-thirds of the company’s revenues. The stock closed at $70.24 on Friday (an all-time high), and the consensus analyst price target of around $74.80 indicates a potential upside of about 6.6%.

Baker Hughes Inc. (NYSE: BHI) gets nearly half of its revenues from North American operations, and its stock is up 62% over the past 12 months. Year to date, shares are up 35%, and the stock is still about $15 a share below its all-time high near $90 in September 2007. Shares closed at $74.63 on Friday, after posting a 52-week high of $74.99. The consensus price target on the stock is around $78.50m for an implied upside of about 5.2%.

Schlumberger’s relatively lower exposure to North America was once a plus for the company. As drilling in the shale plays has increased, however, that advantage has slowly disappeared. The company’s exposure in Iraq is also a concern. Even so, its implied gain is the best among this group.

ALSO READ: Five Oil Stocks Going to New All-Time Highs

The Average American Is Losing Their Savings Every Day (Sponsor)

If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.

Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.

But there is good news. To win qualified customers, some accounts are paying 9-10x this national average. That’s an incredible way to keep your money safe, and get paid at the same time. Our top pick for high yield savings accounts includes other one time cash bonuses, and is FDIC insured.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes and your money could be working for you.