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

Zacks Equity Research

Halliburton (HAL) closed the most recent trading day at $18.55, moving -0.48% from the previous trading session. This move lagged the S&P 500's daily gain of 1.42%. Meanwhile, the Dow gained 1.42%, and the Nasdaq, a tech-heavy index, added 1.4%.

Prior to today's trading, shares of the provider of drilling services to oil and gas operators had lost 1.89% over the past month. This has lagged the Oils-Energy sector's gain of 2.11% and the S&P 500's gain of 0.38% in that time.

Investors will be hoping for strength from HAL as it approaches its next earnings release, which is expected to be October 21, 2019. On that day, HAL is projected to report earnings of $0.35 per share, which would represent a year-over-year decline of 30%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.87 billion, down 4.94% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.30 per share and revenue of $23.34 billion. These totals would mark changes of -31.58% and -2.73%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for HAL. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 2.66% lower. HAL is currently a Zacks Rank #3 (Hold).

In terms of valuation, HAL is currently trading at a Forward P/E ratio of 14.35. This valuation marks a discount compared to its industry's average Forward P/E of 21.18.

Meanwhile, HAL's PEG ratio is currently 2.26. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Oil and Gas - Field Services stocks are, on average, holding a PEG ratio of 2.26 based on yesterday's closing prices.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 183, which puts it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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