Helmerich near peak, profit taking due: Barron's
NEW YORK (Reuters) - The stock of Helmerich & Payne (HP.N), a U.S. land driller for oil and gas, may be at a peak after nearly doubling since January, setting the stage for profit taking, according to the July 7 edition of Barron's.
The company has announced orders to build 20 rigs in its three most recent earnings calls, and its margins, revenues and cash flow are all at peak levels, Barron's said in a report.
But with the stock hitting a high of $77 in June and now trading around $69, the weekly says it might be time to take some profits given that it is trading at 17 times earnings versus nine at one time.
The report also cited an analyst's caution on the industry's cyclicality and volatility.
On Friday, Helmerich shares fell $1.62, or 2.3 percent, to close at $68.76 on the New York Stock Exchange.
(Reporting by Phil Wahba, editing by Richard Chang)
