Back to top

Halliburton (HAL) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Halliburton (HAL - Free Report) closed the most recent trading day at $19.09, moving +0.47% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq lost 0.17%.

Heading into today, shares of the provider of drilling services to oil and gas operators had lost 4.67% over the past month, lagging the Oils-Energy sector's gain of 0.47% and the S&P 500's gain of 4.92% in that time.

HAL will be looking to display strength as it nears its next earnings release, which is expected to be October 21, 2019. In that report, analysts expect HAL to post earnings of $0.36 per share. This would mark a year-over-year decline of 28%. Our most recent consensus estimate is calling for quarterly revenue of $5.92 billion, down 4.12% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.33 per share and revenue of $23.45 billion. These totals would mark changes of -30% and -2.28%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for HAL. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 0.5% lower within the past month. HAL is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, HAL is currently trading at a Forward P/E ratio of 14.29. For comparison, its industry has an average Forward P/E of 21.58, which means HAL is trading at a discount to the group.

We can also see that HAL currently has a PEG ratio of 2.25. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Field Services industry currently had an average PEG ratio of 2.25 as of yesterday's close.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 22% 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.

To follow HAL in the coming trading sessions, be sure to utilize

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Halliburton Company (HAL) - free report >>

Published in