Halliburton (HAL) Laps the Stock Market: Here's Why
Halliburton (HAL) closed at $36.82 in the latest trading session, marking a +1.68% move from the prior day. This move outpaced the S&P 500's daily gain of 0.59%. Meanwhile, the Dow experienced a rise of 0.68%, and the technology-dominated Nasdaq saw an increase of 0.66%.
Coming into today, shares of the provider of drilling services to oil and gas operators had lost 5.21% in the past month. In that same time, the Oils-Energy sector lost 0.43%, while the S&P 500 gained 5.16%.
Market participants will be closely following the financial results of Halliburton in its upcoming release. The company plans to announce its earnings 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, our latest consensus estimate is calling for revenue of $5.79 billion, up 3.7% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.07 per share and a revenue of $23.1 billion, signifying shifts of +42.79% and +13.79%, respectively, from the last year.
It is also important to note the 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Halliburton possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Halliburton is currently trading at a Forward P/E ratio of 11.79. This indicates a discount in contrast to its industry's Forward P/E of 17.42.
It is also worth noting that HAL currently has a PEG ratio of 0.55. 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 0.71 as of yesterday's close.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 205, finds itself in the bottom 19% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Halliburton Company (HAL) : Free Stock Analysis Report
