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What Lies Ahead of Oil Services ETFs in Q3 Earnings Season?
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Big oil services companies will start releasing their quarterly numbers from this week. The outlook is moderate this time thanks to the upbeat oil market. Let’s delve into the earnings potential of two big oil companies that could regulate the performance of the sector ahead.
According to our methodology, a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) when combined with a positive Earnings ESP increases our chances of predicting an earnings beat, while companies with a Zacks Rank #4 or 5 (Sell rated) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Inside Our Surprise Prediction
Schlumberger (SLB) is likely to report on Oct 20. SLB has a Zacks Rank #3 (Hold) and an Earnings ESP of negative 1.07%.
Halliburton (HAL) is likely to report on Oct 24. HAL has a Zacks Rank #3 and an Earnings ESP of +0.00%.
What’s in Store This Earnings Season?
As discussed above, the chances of a broad-based earnings beat are low-to-moderate. This has been reflected in the latest earnings estimates too, with Halliburton’s current quarter EPS estimate of $0.77 remains steady for past two months.
The current-quarter Zacks Consensus EPS expectation for Schlumberger of $0.77 has also remained fixed for past two months. However, Schlumberger’s most accurate estimate
ETFs in Focus
Schlumberger has exposure to ETFs like iShares U.S. Oil Equipment & Services ETF (IEZ - Free Report) (21.91% exposure), VanEck Oil Services ETF (OIH - Free Report) (19.34% exposure) and Invesco Dynamic Oil & Gas Services ETF (PXJ - Free Report) (5.19% exposure).
Halliburton too has the same exposure. iShares U.S. Oil Equipment & Services ETF (with 21.97% exposure), VanEck Oil Services ETF (OIH - Free Report) (with 12.22% exposure) and Invesco Dynamic Oil & Gas Services ETF (PXJ - Free Report) (with 5.14% exposure) are top three ETFs that are heavily-focused on Halliburton.
What Lies in Q4?
Global slowdown fears are rife. The Fed raised interest rates several times this year and may enact one more rate hike this year, which could further weigh on risk-on trade sentiments. But then, oil prices remain high and the Middle East tension will likely keep it at the higher levels. This trend can go in favor for the broader energy space.
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What Lies Ahead of Oil Services ETFs in Q3 Earnings Season?
Big oil services companies will start releasing their quarterly numbers from this week. The outlook is moderate this time thanks to the upbeat oil market. Let’s delve into the earnings potential of two big oil companies that could regulate the performance of the sector ahead.
According to our methodology, a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) when combined with a positive Earnings ESP increases our chances of predicting an earnings beat, while companies with a Zacks Rank #4 or 5 (Sell rated) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Inside Our Surprise Prediction
Schlumberger (SLB) is likely to report on Oct 20. SLB has a Zacks Rank #3 (Hold) and an Earnings ESP of negative 1.07%.
Halliburton (HAL) is likely to report on Oct 24. HAL has a Zacks Rank #3 and an Earnings ESP of +0.00%.
What’s in Store This Earnings Season?
As discussed above, the chances of a broad-based earnings beat are low-to-moderate. This has been reflected in the latest earnings estimates too, with Halliburton’s current quarter EPS estimate of $0.77 remains steady for past two months.
The current-quarter Zacks Consensus EPS expectation for Schlumberger of $0.77 has also remained fixed for past two months. However, Schlumberger’s most accurate estimate
ETFs in Focus
Schlumberger has exposure to ETFs like iShares U.S. Oil Equipment & Services ETF (IEZ - Free Report) (21.91% exposure), VanEck Oil Services ETF (OIH - Free Report) (19.34% exposure) and Invesco Dynamic Oil & Gas Services ETF (PXJ - Free Report) (5.19% exposure).
Halliburton too has the same exposure. iShares U.S. Oil Equipment & Services ETF (with 21.97% exposure), VanEck Oil Services ETF (OIH - Free Report) (with 12.22% exposure) and Invesco Dynamic Oil & Gas Services ETF (PXJ - Free Report) (with 5.14% exposure) are top three ETFs that are heavily-focused on Halliburton.
What Lies in Q4?
Global slowdown fears are rife. The Fed raised interest rates several times this year and may enact one more rate hike this year, which could further weigh on risk-on trade sentiments. But then, oil prices remain high and the Middle East tension will likely keep it at the higher levels. This trend can go in favor for the broader energy space.