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Are Investors Undervaluing Halliburton (HAL) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Halliburton (HAL - Free Report) . HAL is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.76, which compares to its industry's average of 17.03. Over the past 52 weeks, HAL's Forward P/E has been as high as 10.80 and as low as 7.12, with a median of 9.10.
Another notable valuation metric for HAL is its P/B ratio of 1.82. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.03. Over the past 12 months, HAL's P/B has been as high as 2.73 and as low as 1.59, with a median of 2.08.
Finally, we should also recognize that HAL has a P/CF ratio of 6.50. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.34. Over the past 52 weeks, HAL's P/CF has been as high as 7.81 and as low as 5.23, with a median of 6.40.
If you're looking for another solid Oil and Gas - Field Services value stock, take a look at RPC (RES - Free Report) . RES is a Zacks Rank of #2 (Buy) stock with a Value score of A.
RPC sports a P/B ratio of 0.91 as well; this compares to its industry's price-to-book ratio of 2.03. In the past 52 weeks, RES's P/B has been as high as 1.43, as low as 0.88, with a median of 1.08.
These are only a few of the key metrics included in Halliburton and RPC strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, HAL and RES look like an impressive value stock at the moment.
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Are Investors Undervaluing Halliburton (HAL) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Halliburton (HAL - Free Report) . HAL is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.76, which compares to its industry's average of 17.03. Over the past 52 weeks, HAL's Forward P/E has been as high as 10.80 and as low as 7.12, with a median of 9.10.
Another notable valuation metric for HAL is its P/B ratio of 1.82. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.03. Over the past 12 months, HAL's P/B has been as high as 2.73 and as low as 1.59, with a median of 2.08.
Finally, we should also recognize that HAL has a P/CF ratio of 6.50. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.34. Over the past 52 weeks, HAL's P/CF has been as high as 7.81 and as low as 5.23, with a median of 6.40.
If you're looking for another solid Oil and Gas - Field Services value stock, take a look at RPC (RES - Free Report) . RES is a Zacks Rank of #2 (Buy) stock with a Value score of A.
RPC sports a P/B ratio of 0.91 as well; this compares to its industry's price-to-book ratio of 2.03. In the past 52 weeks, RES's P/B has been as high as 1.43, as low as 0.88, with a median of 1.08.
These are only a few of the key metrics included in Halliburton and RPC strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, HAL and RES look like an impressive value stock at the moment.