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Halliburton (HAL) Gains But Lags Market: What You Should Know

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Halliburton (HAL - Free Report) closed the most recent trading day at $37.89, moving +1.96% from the previous trading session. This move lagged the S&P 500's daily gain of 3.1%. Elsewhere, the Dow gained 2.18%, while the tech-heavy Nasdaq added 0.21%.

Heading into today, shares of the provider of drilling services to oil and gas operators had gained 1.81% over the past month, lagging the Oils-Energy sector's gain of 2.25% and outpacing the S&P 500's gain of 1.66% in that time.

Investors will be hoping for strength from Halliburton as it approaches its next earnings release. On that day, Halliburton is projected to report earnings of $0.66 per share, which would represent year-over-year growth of 83.33%. Meanwhile, our latest consensus estimate is calling for revenue of $5.57 billion, up 30.25% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.09 per share and revenue of $20.29 billion. These totals would mark changes of +93.52% and +32.63%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Halliburton. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.23% higher within the past month. Halliburton is currently a Zacks Rank #1 (Strong Buy).

Investors should also note Halliburton's current valuation metrics, including its Forward P/E ratio of 17.76. This represents a discount compared to its industry's average Forward P/E of 22.54.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 33, putting it in the top 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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