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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 $17.86, moving -0.28% from the previous trading session. This change lagged the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, added 0.48%.

Heading into today, shares of the provider of drilling services to oil and gas operators had gained 43.17% over the past month, outpacing the Oils-Energy sector's gain of 27.8% and the S&P 500's gain of 5.06% in that time.

HAL will be looking to display strength as it nears its next earnings release, which is expected to be January 19, 2021. On that day, HAL is projected to report earnings of $0.14 per share, which would represent a year-over-year decline of 56.25%. Meanwhile, our latest consensus estimate is calling for revenue of $3.21 billion, down 38.14% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.62 per share and revenue of $14.42 billion. These totals would mark changes of -50% and -35.65%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for HAL. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection has moved 1.32% higher. HAL is currently a Zacks Rank #3 (Hold).

Looking at its valuation, HAL is holding a Forward P/E ratio of 29.12. Its industry sports an average Forward P/E of 31.7, so we one might conclude that HAL is trading at a discount comparatively.

Investors should also note that HAL has a PEG ratio of 4 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Field Services industry currently had an average PEG ratio of 4.95 as of yesterday's close.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 239, which puts it in the bottom 6% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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