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In the latest trading session, Halliburton (HAL) closed at $19.97, marking a +0.3% move from the previous day. The stock lagged the S&P 500's daily gain of 2.05%. Elsewhere, the Dow gained 1.78%, while the tech-heavy Nasdaq added 2.47%.
The provider of drilling services to oil and gas operators's stock has dropped by 3.58% in the past month, falling short of the Oils-Energy sector's gain of 1.87% and the S&P 500's gain of 5.21%.
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The upcoming earnings release of Halliburton will be of great interest to investors. The company is expected to report EPS of $0.57, down 28.75% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $5.46 billion, reflecting a 6.42% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $2.40 per share and a revenue of $21.87 billion, demonstrating changes of -19.73% and -4.67%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Halliburton. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection has moved 3.4% lower. At present, Halliburton boasts a Zacks Rank of #4 (Sell).
Digging into valuation, Halliburton currently has a Forward P/E ratio of 8.29. For comparison, its industry has an average Forward P/E of 14.47, which means Halliburton is trading at a discount to the group.
Investors should also note that HAL has a PEG ratio of 3.07 right now. 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. Oil and Gas - Field Services stocks are, on average, holding a PEG ratio of 2.4 based on yesterday's closing prices.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 172, this industry ranks in the bottom 31% of all industries, numbering over 250.