Halliburton (HAL) closed the most recent trading day at $41.29, moving -0.34% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.94%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq lost 1.53%.
Coming into today, shares of the provider of drilling services to oil and gas operators had gained 7.39% in the past month. In that same time, the Oils-Energy sector gained 4.35%, while the S&P 500 gained 1.85%.
Investors will be hoping for strength from Halliburton as it approaches its next earnings release, which is expected to be October 24, 2023. The company is expected to report EPS of $0.77, up 28.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.85 billion, up 9.27% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.04 per share and revenue of $23.28 billion. These totals would mark changes of +41.4% and +14.71%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Halliburton. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Halliburton is currently a Zacks Rank #3 (Hold).
Investors should also note Halliburton's current valuation metrics, including its Forward P/E ratio of 13.62. For comparison, its industry has an average Forward P/E of 19.58, which means Halliburton is trading at a discount to the group.
It is also worth noting that HAL currently has a PEG ratio of 0.69. 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. HAL's industry had an average PEG ratio of 0.76 as of yesterday's close.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 58, putting it in the top 24% 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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