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Halliburton (HAL) Gains As Market Dips: What You Should Know

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Halliburton (HAL - Free Report) closed at $40.88 in the latest trading session, marking a +0.44% move from the prior day. This change outpaced the S&P 500's 0.7% loss on the day. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq lost 1.06%.

Heading into today, shares of the provider of drilling services to oil and gas operators had gained 2.31% over the past month, lagging the Oils-Energy sector's gain of 4.46% and outpacing the S&P 500's gain of 0.58% in that time.

Halliburton will be looking to display strength as it nears its next earnings release. In that report, analysts expect Halliburton to post earnings of $0.77 per share. This would mark year-over-year growth of 28.33%. Meanwhile, our latest consensus estimate is calling for revenue of $5.85 billion, up 9.27% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.04 per share and revenue of $23.28 billion. These totals would mark changes of +41.4% and +14.71%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Halliburton. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Halliburton is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Halliburton is holding a Forward P/E ratio of 13.38. This valuation marks a discount compared to its industry's average Forward P/E of 19.2.

Also, we should mention that HAL has a PEG ratio of 0.68. 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. Oil and Gas - Field Services stocks are, on average, holding a PEG ratio of 0.76 based on yesterday's closing prices.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% 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.

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


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