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Halliburton (HAL) Dips More Than Broader Markets: What You Should Know

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Halliburton (HAL - Free Report) closed the most recent trading day at $22.84, moving -0.17% from the previous trading session. This move lagged the S&P 500's daily loss of 0.13%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq lost 0.24%.

Prior to today's trading, shares of the provider of drilling services to oil and gas operators had lost 2.68% over the past month. This has lagged the Oils-Energy sector's gain of 0.64% and the S&P 500's gain of 4.13% in that time.

Wall Street will be looking for positivity from HAL as it approaches its next earnings report date. This is expected to be July 22, 2019. On that day, HAL is projected to report earnings of $0.29 per share, which would represent a year-over-year decline of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.97 billion, down 2.84% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.38 per share and revenue of $24.37 billion, which would represent changes of -27.37% and +1.55%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for HAL. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.03% lower within the past month. HAL is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note HAL's current valuation metrics, including its Forward P/E ratio of 16.61. This valuation marks a discount compared to its industry's average Forward P/E of 17.67.

Meanwhile, HAL's PEG ratio is currently 1.24. 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. The Oil and Gas - Field Services was holding an average PEG ratio of 1.85 at yesterday's closing price.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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


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