Did you know these two industrial stocks surged 50% YTD? - Kalkine Media

January 01, 2023 07:03 AM PST | By Mridul Gogoi
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Highlights:

  • Halliburton posted a Q3 2022 revenue of US$ 5,357 million.
  • Schlumberger had a dividend yield of 1.352 per cent.
  • SLB reported a Q3 2022 diluted EPS (GAAP basis) of US$ 0.63.

The industrial sector stocks belong to those companies that manufacture machines, equipment related to construction, and other services. Their growth is often tied to the economic outlook of the country. Industrial stocks are sensitive to economic factors like high inflation and recession.

Generally, stocks tend to go down during recessionary periods. It reflects in the Dow Jones industrial’s year-to-date return of -9.60 per cent.   

However, there were some stocks that outperformed the market. Here, we’ll look at two such large-cap industrial stocks- Halliburton Company (NYSE: HAL) and Schlumberger N.V. (NYSE: SLB) and their recent performances:

Halliburton Company (NYSE: HAL):

Halliburton is part of the conglomerate of the three largest oilfield service companies globally. It deals in completion fluids, cementing, and wireline services, among others.

With a dividend yield of 1.283 per cent, Halliburton paid a quarterly dividend of US$ 0.12 apiece. It has an EPS of 1.93 and a P/E ratio of 18.7.

In the third quarter of fiscal 2022, Halliburton posted a total revenue of US$ 5,357 million compared to US$ 3,860 million in the same quarter in 2021. It is an increase from US$ 5,074 million in the previous quarter of the current fiscal.

The company’s operating income in the three months that ended September 30, 2022, was US$ 846 million versus US$ 446 million in the year-ago quarter. Its net income in the reported quarter was US$ 549 million, whereas, in the same comparative period in 2021, it was US$ 240 million.

Schlumberger N.V. (NYSE: SLB)

Schlumberger, now SLB is the global leader as an oilfield service company. The company offers services in a host of disciplines, like reservoir performance, production enhancement, and well construction.

It has a dividend yield of 1.352 per cent and paid a quarterly dividend of US$ 0.175 per share. The largest oilfield service provider in the world, SLB has an EPS of 2.08 while its P/B (price-to-book) ratio is 4.267.

SLB posted a revenue of US$ 7.5 billion in the third quarter of fiscal 2022, which was up 28 per cent year on year. Revenue in the corresponding quarter of 2021 was US$ 5.84 billion, while in the preceding quarter it was US$ 6.77 billion.

The diluted EPS (GAAP basis) in Q3 2022 was US$ 0.63 compared to US$ 0.39. SLB achieved a revenue of US$ 1.5 billion in North America, which was up 37 per cent YoY.

Bottom line:

Although industrial stocks are sought-after among investors, the current market conditions differ. Many large-cap companies have shed billions throughout the year due to volatility.

Macroeconomic factors, high inflation, and the Fed Reserve’s hawkish monetary policies impacted the equity market and the participants. So, as an investor, always do your due diligence before making any decision. You can diversify your portfolio and wait for the market to emerge from this phase before you put your bets on any sector or stocks like before.  


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