U.S. Markets closed

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

Zacks Equity Research

In the latest trading session, Halliburton (HAL) closed at $24.48, marking a -0.24% move from the previous day. This change lagged the S&P 500's 0.45% gain on the day. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 0.67%.

Prior to today's trading, shares of the provider of drilling services to oil and gas operators had gained 19.53% over the past month. This has outpaced the Oils-Energy sector's gain of 3.43% and the S&P 500's gain of 2.44% in that time.

Investors will be hoping for strength from HAL as it approaches its next earnings release, which is expected to be January 21, 2020. The company is expected to report EPS of $0.30, down 26.83% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.11 billion, down 13.91% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.21 per share and revenue of $22.31 billion, which would represent changes of -36.32% and -7.04%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for HAL. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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. Within the past 30 days, our consensus EPS projection has moved 0.39% lower. HAL currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, HAL is holding a Forward P/E ratio of 20.25. Its industry sports an average Forward P/E of 24.13, so we one might conclude that HAL is trading at a discount comparatively.

It is also worth noting that HAL currently has a PEG ratio of 4.65. 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. The Oil and Gas - Field Services industry currently had an average PEG ratio of 2.88 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 239, putting it in the bottom 7% 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.

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


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Halliburton Company (HAL) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.