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Halliburton (HAL) Suffers a Larger Drop Than the General Market: Key Insights

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Halliburton (HAL - Free Report) ended the recent trading session at $29.10, demonstrating a -0.68% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 0.31%.

Heading into today, shares of the provider of drilling services to oil and gas operators had lost 5.73% over the past month, lagging the Oils-Energy sector's loss of 2.45% and the S&P 500's gain of 1.57% in that time.

Investors will be eagerly watching for the performance of Halliburton in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 7, 2024. On that day, Halliburton is projected to report earnings of $0.76 per share, which would represent a year-over-year decline of 3.8%. Meanwhile, our latest consensus estimate is calling for revenue of $5.84 billion, up 0.55% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $3.14 per share and a revenue of $23.46 billion, demonstrating changes of +0.32% and +1.9%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Halliburton. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.21% increase. Halliburton currently has a Zacks Rank of #4 (Sell).

In terms of valuation, Halliburton is presently being traded at a Forward P/E ratio of 9.32. Its industry sports an average Forward P/E of 18.54, so one might conclude that Halliburton is trading at a discount comparatively.

Meanwhile, HAL's PEG ratio is currently 1. 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. As of the close of trade yesterday, the Oil and Gas - Field Services industry held an average PEG ratio of 0.95.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 167, placing it within the bottom 34% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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