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Halliburton (HAL) closed at $24.66 in the latest trading session, marking a -0.92% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.76%. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq lost 0.18%.
Shares of the provider of drilling services to oil and gas operators witnessed a loss of 4.2% over the previous month, beating the performance of the Oils-Energy sector with its loss of 6.68% and the S&P 500's loss of 7.29%.
The investment community will be paying close attention to the earnings performance of Halliburton in its upcoming release. The company is predicted to post an EPS of $0.61, indicating a 19.74% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $5.26 billion, down 9.29% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $2.63 per share and a revenue of $22.28 billion, demonstrating changes of -12.04% and -2.89%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Halliburton. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 1.5% fall in the Zacks Consensus EPS estimate. Halliburton presently features a Zacks Rank of #4 (Sell).
In terms of valuation, Halliburton is presently being traded at a Forward P/E ratio of 9.45. For comparison, its industry has an average Forward P/E of 12.42, which means Halliburton is trading at a discount to the group.
One should further note that HAL currently holds a PEG ratio of 3.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. HAL's industry had an average PEG ratio of 1.23 as of yesterday's close.