Halliburton (HAL) Laps the Stock Market: Here's Why
Halliburton (HAL) closed the latest trading day at $34.48, indicating a +0.85% change from the previous session's end. This change outpaced the S&P 500's 0.08% gain on the day. Elsewhere, the Dow saw a downswing of 0.31%, while the tech-heavy Nasdaq appreciated by 0.02%.
The provider of drilling services to oil and gas operators's stock has dropped by 4.74% in the past month, falling short of the Oils-Energy sector's gain of 0.61% and the S&P 500's gain of 3.52%.
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. In that report, analysts expect Halliburton to post earnings of $0.80 per share. This would mark year-over-year growth of 11.11%. At the same time, our most recent consensus estimate is projecting a revenue of $5.79 billion, reflecting a 3.65% rise from the equivalent quarter last year.
Investors should also take note of any recent adjustments to analyst estimates for Halliburton. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.78% decrease. Halliburton currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Halliburton is presently being traded at a Forward P/E ratio of 9.89. This indicates a discount in contrast to its industry's Forward P/E of 13.61.
It's also important to note that HAL currently trades at a PEG ratio of 0.46. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Oil and Gas - Field Services stocks are, on average, holding a PEG ratio of 0.67 based on yesterday's closing prices.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 196, positioning it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Halliburton Company (HAL) : Free Stock Analysis Report
