Halliburton Company

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Bullish +75

Michael Burry’s Latest Buys Include a 6.66% Yielding Pharma Giant and an Oil Stock Up 46% This Year. Here Is Why

AI-generated analysis

🧠 Michael Burry’s latest portfolio additions include Pfizer (PFE), Molina Healthcare (MOH), and Halliburton (HAL).

💰 These three companies are selected for their defensive valuations, real earnings potential, and margin stability during inflationary pressures.

💊 Pfizer trades at a forward P/E of 9 with a unique 6.66% dividend yield and low volatility compared to the broader S&P 500.

🦠 The biotech giant’s non-COVID portfolio grew 9% in Q4 2025, signaling a rebound as the company moves past the post-pandemic earnings drag.

💉 Analyst targets suggest meaningful upside for Pfizer shares, which are already up 25.15% over the past year despite patent concerns.

🏥 Molina Healthcare recently cratered after posting a $2.75 EPS loss in Q4 2025, but management views this as a temporary trough year for Medicaid margins.

📈 Molina stock has already rallied 26.64% in the past month as investors anticipate embedded earnings recovery of over $11.00 per share between 2027 and 2029.

⛽ Halliburton reported Q1 2026 EPS of $0.55 beating estimates, driven by WTI crude oil prices doubling from late 2025 to early 2026.

🚀 The oilfield services leader has returned 85% of its free cash flow to shareholders via buybacks and dividends since 2025.

⚠️ A shared risk across all three positions is a potential recession that could impact their earnings simultaneously.

✅ The shared advantage is that current valuations for Pfizer, Molina, and Halliburton already discount the worst-case scenarios.

🛡️ Each stock offers protection through cash-generative business models: Pfizer yields, Molina hedges inflation via non-discretionary spending, and Halliburton benefits from cyclical oil demand.

🎯 Burry’s strategy favors these names because they generate real earnings while maintaining pricing power in their respective sectors.

📊 Wall Street analysts maintain bullish sentiment with 19 Buy or Strong Buy ratings for Halliburton and 11 of 29 covering Pfizer as Buy or Strong Buy.

🔁 Both Molina and Halliburton are positioned to snap back as market conditions normalize, specifically regarding interest rates and crude oil prices respectively.

Bullish Signals
  • Michael Burry has identified Halliburton (NYSE:HAL) and Pfizer (NYSE:PFE) as key holdings in his latest portfolio, signaling strong institutional conviction in their defensive qualities.
  • Halliburton shares are up 46% year to date, with WTI crude prices climbing from $57.97 in December 2025 to $100.32 in April 2026, creating a powerful tailwind for demand.
  • Pfizer offers a rare 6.66% dividend yield and trades at a forward P/E of 9, implying significant upside potential as the COVID drag fades and analysts target a price of $29.11.
  • Halliburton returned 85% of its free cash flow to shareholders in 2025 via $1 billion in buybacks, establishing it as a disciplined shareholder yield machine during a crude recovery.
  • Molina Healthcare has already rallied 26.64% in the past month as buyers look past a trough year, with embedded earnings of over $11.00 per share targeted for 2027 through 2029.
  • Pfizer's non-COVID portfolio grew 9% operationally in Q4 2025, supported by roughly 20 pivotal trial starts ahead including obesity assets from the Metsera acquisition.
  • Halliburton beat earnings estimates with EPS of $0.55 on revenue of $5.40 billion in Q1 2026, reinforcing management's view that North America is in the early innings of a recovery.
Risk Factors
  • Molina Healthcare cratered after Q4 2025, posting an adjusted EPS loss of $2.75 compared to the $0.50 consensus, signaling severe near-term earnings deterioration.
  • CEO Joseph Zubretsky frames 2026 as a trough year for Medicaid industry margins, explicitly warning of embedded earnings pressures before any recovery.
  • Molina's stock upside is constrained with an analyst target of $182.25 that sits roughly even with the current price of $186.80, meaning gains must rely on earnings recovery rather than valuation expansion.
  • Halliburton remains exposed to cyclical volatility as CEO Jeff Miller describes North America as only in the 'early innings of a recovery,' indicating the full upside may not be realized.
  • The shared downside risk for this basket is a recession that would drag Pfizer, Molina, and Halliburton down simultaneously despite their defensive characteristics.
  • Pfizer's forward P/E of 9 is derived from expectations of earnings expansion as the COVID drag fades, implying current valuations rely heavily on a successful pivot away from post-pandemic revenue headwinds.
  • Halliburton's Q1 2026 EPS of $0.55 beat estimates, but management returned only 85% of free cash flow to shareholders, suggesting retention needs to support ongoing capital discipline in a cyclical downturn.
Full Analysis
Billionaire investor Michael Burry's recent trading activity includes purchases of Pfizer (PFE), Molina Healthcare (MOH), and Halliburton (HAL), highlighting a strategy focused on defensive valuations and cash-generative assets during an inflationary environment. The article notes that all three stocks trade at prices reflecting lower multiples relative to growth expectations, with Burry citing the real earnings stability and margin resilience required as key investment drivers when inflation pressures persist across broader markets. Specifically, Halliburton (HAL) is highlighted for its 46% year-to-date gain, driven by a recovery in crude oil prices from $57.97 in late 2025 to over $100 per barrel by April 2026, which has directly boosted oilfield services demand and revenue of $5.4 billion in Q1 2026. Pfizer (PFE) is presented as a low-volatility pharma giant trading at a forward P/E of 9 despite a trailing P/E of 20, suggesting analyst expectations for earnings expansion once the post-pandemic revenue drag subsides. The stock offers a rare 6.66% dividend yield and operates with a beta of 0.305, making it one of the least volatile large-cap stocks in the S&P 500. Operational growth in the non-COVID portfolio reached 9% in Q4 2025, bolstered by upcoming pipeline assets from the Metsera acquisition and approximately 20 pivotal trials starting soon. Molina Healthcare (MOH) is included as a Medicaid-focused operator currently navigating what management describes as a "trough year" with a significant Q4 2025 miss, yet it targets embedded earnings exceeding $11.00 per share for the 2027-2029 period as new contracts mature. The combined investment thesis relies on these companies earning cash flow first while trading at valuations that discount current challenges, such as patent cliffs for Pfizer or recession risks for the sector generally. Halliburton reinforces this approach through capital return discipline, returning 85% of free cash flow to shareholders in 2025 via $1 billion in buybacks and dividends, effectively turning a cyclical business into a high-yield machine. Collectively, the article argues that these three names offer structural edges for investors hedging against inflation while seeking durable earnings potential, with analyst consensus generally favoring the stocks as evidenced by multiple "Buy" or "Strong Buy" ratings compared to sell recommendations across all three tickers.