Will Massive Trial Pressures Derail This Stock? – BP plc (ADR) (BP), Halliburton Company (HAL), Transocean LTD (RIG)

Net income exceeded the consensus estimates of analysts, though its revenue was slightly below the expectation. Transocean LTD (NYSE:RIG) reported net income of $456 million, or $1.26 per share, compared to a loss of $6.17 billion, or $18.76 per share, in the same quarter of the previous year. Excluding one-time items, the EPS for the fourth quarter was $0.91 a share. Analysts had expected $0.82 per share and $2.36 billion in revenue, according to FactSet. Investors should keep a close eye on the company over the next several months. Current investors should hold onto their positions, but new investors should wait until next quarter to buy.

Halliburton Company (NYSE:HAL) is one of the world’s largest providers of services to the energy industry, and employs more than 72,000 people from 140 nationalities who work in approximately 80 countries.  The company announced that income from continuing operations for the fourth quarter of 2012 was $589 million, amounting to $0.63 per diluted share, compared to net income from continuing operations for the preceding quarter of $608 million, or $0.65 per diluted share. Adjusted income from continuing operations for the preceding quarter was $625 million, or $0.67 per diluted share. Halliburton Company (NYSE:HAL)’s total revenue in the fourth quarter was $7.3 billion, compared to $7.1 billion for the preceding quarter. Total operating income was $981 million for the fourth quarter, compared to $954 million for the third quarter. The company continues to exhibit growth in international regions, particularly in Middle East/Asia and Latin America, where growth compensated for seasonally lower activity levels in North America.  Given the reduced levels of drilling activity in North America, I recommend that investors keep a close eye on this stock and use caution when buying.

BP plc (ADR) (NYSE:BP) is strong financially, and has already made substantial provisions so that it should be able to withstand even an unfavorable outcome from the trial. The stock has been trading around $40, compared to a mean analyst target price of $51. I see 25% upside potential here between now and six months out, and I recommend buying the stock.

The article Will Massive Trial Pressures Derail This Stock? originally appeared on Fool.com and is written by  Maxwell Fisher.

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