Historically, tumultuous times offer some of the best opportunities to buy stocks, and the market's recent mess surely qualifies. There are few companies that are growing stronger today, but many investors think much-maligned energy services company Halliburton (NYSE: HAL) is one of them.
In our Motley Fool CAPS community, nearly 95% of the 2,871 investors rating the company are bullish, so there's no shortage of reasons why Halliburton will thrive, three of which I've highlighted below.
But here at The Motley Fool, we're all for looking at both the good and bad sides of an investment. Once you're done with this article, you can read the case against Halliburton, weigh in with your own comments below, or rate Halliburton yourself in CAPS.
1. Still winning contracts
Despite a softer energy market that's materially affected integrated energy giants like Chevron (NYSE: CVX) and ConocoPhillips (NYSE: COP), many CAPS members still see lots of opportunity in the energy sector, thanks to the global oil and gas demand outlook. Halliburton is still filling the pipeline and has recently scored new contracts with Petrobras (NYSE: PBR), Royal Dutch Shell, and Talisman Energy, and has also renewed a three-year deal with BP (NYSE: BP).
2. Business bottoming out
For the first time since last year, Halliburton pulled in a sequential revenue gain, rising 3% in the third quarter over the second. Halliburton's CEO said the company is seeing signs that margins are bottoming and sees other signs of improvement, giving many CAPS members confidence that the sector is back on the upswing and the company has room to grow.
3. International strength
Halliburton has been seeing strength in international markets where it now does a large portion of it business -- a regional diversity trend that should also be beneficial for others like Schlumberger (NYSE: SLB) and drillers like Noble (NYSE: NE). Regions like the Middle East and Russia have seen strong activity, and Halliburton expects expansion and new contracts in Brazil to further its long-term growth prospects.
To see details of what CAPS members are saying now about Halliburton, just click on over to Motley Fool CAPS and have a look, or add your thoughts directly to this story in the comments box below.
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