Halliburton (HAL) Gains But Lags Market: What You Should Know
Halliburton (HAL) closed the latest trading day at $33.31, indicating a +0.21% change from the previous session's end. This change lagged the S&P 500's 0.88% gain on the day. Meanwhile, the Dow gained 0.54%, and the Nasdaq, a tech-heavy index, added 1.35%.
The the stock of provider of drilling services to oil and gas operators has fallen by 8.83% in the past month, lagging the Oils-Energy sector's loss of 3.78% and the S&P 500's gain of 0.64%.
Investors will be eagerly watching for the performance of Halliburton in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 23, 2024. The company is predicted to post an EPS of $0.80, indicating a 11.11% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.79 billion, up 3.65% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Halliburton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.63% decrease. Halliburton presently features a Zacks Rank of #3 (Hold).
Investors should also note Halliburton's current valuation metrics, including its Forward P/E ratio of 9.63. For comparison, its industry has an average Forward P/E of 13.36, which means Halliburton is trading at a discount to the group.
We can also see that HAL currently has a PEG ratio of 0.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Oil and Gas - Field Services industry held an average PEG ratio of 0.71.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 213, placing it within the bottom 16% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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Halliburton Company (HAL) : Free Stock Analysis Report
