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Halliburton (HAL) Gains As Market Dips: What You Should Know

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Halliburton (HAL) closed at $21.60 in the latest trading session, marking a +1.46% move from the prior day. This move outpaced the S&P 500's daily loss of 0.28%. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, lost 1.61%.

Coming into today, shares of the provider of drilling services to oil and gas operators had lost 20.08% in the past month. In that same time, the Oils-Energy sector lost 8.01%, while the S&P 500 lost 6.3%.

Wall Street will be looking for positivity from HAL as it approaches its next earnings report date. This is expected to be July 22, 2019. The company is expected to report EPS of $0.29, down 50% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.97 billion, down 2.84% from the year-ago period.

HAL's full-year Zacks Consensus Estimates are calling for earnings of $1.39 per share and revenue of $24.37 billion. These results would represent year-over-year changes of -26.84% and +1.55%, respectively.

Investors might also notice recent changes to analyst estimates for HAL. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.93% higher within the past month. HAL is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, HAL is currently trading at a Forward P/E ratio of 15.3. For comparison, its industry has an average Forward P/E of 15.93, which means HAL is trading at a discount to the group.

Investors should also note that HAL has a PEG ratio of 1.15 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. HAL's industry had an average PEG ratio of 1.5 as of yesterday's close.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 44% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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