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Halliburton (HAL) Gains But Lags Market: What You Should Know

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Halliburton (HAL) closed at $27.86 in the latest trading session, marking a +1.9% move from the prior day. This move lagged the S&P 500's daily gain of 1.92%. At the same time, the Dow added 2.15%, and the tech-heavy Nasdaq gained 0.16%.

Heading into today, shares of the provider of drilling services to oil and gas operators had lost 18.32% over the past month, lagging the Oils-Energy sector's loss of 15.44% and the S&P 500's gain of 1.54% in that time.

Halliburton will be looking to display strength as it nears its next earnings release, which is expected to be July 19, 2022. On that day, Halliburton is projected to report earnings of $0.45 per share, which would represent year-over-year growth of 73.08%. Our most recent consensus estimate is calling for quarterly revenue of $4.71 billion, up 27.08% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.92 per share and revenue of $19.2 billion. These totals would mark changes of +77.78% and +25.51%, respectively, from last year.

Any recent changes to analyst estimates for Halliburton should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.21% higher. Halliburton currently has a Zacks Rank of #2 (Buy).

Digging into valuation, Halliburton currently has a Forward P/E ratio of 14.25. For comparison, its industry has an average Forward P/E of 18.2, which means Halliburton is trading at a discount to the group.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow HAL in the coming trading sessions, be sure to utilize Zacks.com.


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