Why the Market Dipped But Halliburton (HAL) Gained Today
The latest trading session saw Halliburton (HAL) ending at $36.66, denoting a +1.24% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 0.11%. On the other hand, the Dow registered a gain of 0.12%, and the technology-centric Nasdaq decreased by 0.41%.
The provider of drilling services to oil and gas operators's stock has climbed by 4.93% in the past month, exceeding the Oils-Energy sector's gain of 3.56% and the S&P 500's gain of 2.7%.
The investment community will be paying close attention to the earnings performance of Halliburton in its upcoming release. It is anticipated that the company will report an EPS of $0.75, marking a 4.17% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $5.68 billion, showing a 0.1% escalation compared to the year-ago quarter.
HAL's full-year Zacks Consensus Estimates are calling for earnings of $3.43 per share and revenue of $24.32 billion. These results would represent year-over-year changes of +9.58% and +5.67%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Halliburton. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% lower. Halliburton is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Halliburton is presently being traded at a Forward P/E ratio of 10.57. Its industry sports an average Forward P/E of 14.23, so one might conclude that Halliburton is trading at a discount comparatively.
Also, we should mention that HAL has a PEG ratio of 0.91. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Oil and Gas - Field Services stocks are, on average, holding a PEG ratio of 0.91 based on yesterday's closing prices.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 157, finds itself in the bottom 38% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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
