Is now a good time to buy Haliburton stock?
Age 54, I already have Roth IRA and pension.
Well done in establishing both a taxable retirement income and a tax free retirement income. You can benefit from a lower tax rate at retirement by blending the two types together. If you can save enough to the Roth so that you can equal the income coming from the pension, that is the called "horizontal diversification". | 01.13.15 @ 23:03
I wouldn't buy it right today but it appears there could be a very good buying opportunity upon chart confirmations, perhaps in the next few days or weeks. | 01.13.15 @ 23:08
Whether or not now is the time to buy Haliburton (XNYS: HAL) really depends on how it fits into your overall financial plan. Without knowing your age of retirement and life expectancy, investment risk tolerance, amount of capital to invest in proportion to your entire investment asset base and how you plan to hold the asset (taxable account or in a tax-free Roth or deferred tax IRA or 401k), it is hard to answer this question for your specific situation.
Morningstar research indicates that the stock is trading near its 12-month low. (As of 1/14/2015 at 10:15 AM it was trading at $37.90 and the 12-month low is $37.21). It's current price is around the level it was trading at in March 2013. With a Morningstar 'fair value' estimate of $60 and a recommendation to buy at the $42 level, it is certainly a bargain at current prices.
As a provider of services to the energy industry, Haliburton has been dragged down as oil prices have tumbled to a multi-year low. With OPEC nations like Saudi Arabia declaring that they will continue to produce oil even at such low prices in an effort to maintain market share and thwart efforts to move to alternative fuels, oil prices will likely remain in this range for a while. And if continued slowing in major economies persists, the demand for oil will likely be low.
Such outside factors will certainly keep pressure on Haliburton stock in the near future though they will benefit from ongoing service contracts with OPEC producers but its major emphasis has been in the area of deep water exploration. The concern here for analysts is that with low oil prices there may be pressure to postpone such high profit margin activities into later years when oil prices recover. So this may result in near term revenue and profit margin pressures.
If your goal is to generate dividends for your portfolio, there may be other opportunities that are higher than the 1.70% yield being offered here. Other broad-based Exchange Traded Funds (ETFs) have higher yields and more diversification beyond oil, utilities and financial services. If your goal is capital appreciation, there is certainly upside potential given current price levels. It all depends on what problem you're trying to solve for: portfolio diversification, long-term capital appreciation, dividend income, short-term gains.
| 01.14.15 @ 15:33