Halliburton (HAL) Stock Sinks As Market Gains: What You Should Know
Halliburton (HAL) closed at $31.06 in the latest trading session, marking a -0.93% move from the prior day. This move lagged the S&P 500's daily gain of 0.57%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.33%.
Prior to today's trading, shares of the provider of drilling services to oil and gas operators had lost 16.42% over the past month. This has lagged the Oils-Energy sector's loss of 2.71% and the S&P 500's gain of 1.72% in that time.
Halliburton will be looking to display strength as it nears its next earnings release, which is expected to be April 25, 2023. On that day, Halliburton is projected to report earnings of $0.67 per share, which would represent year-over-year growth of 91.43%. Meanwhile, our latest consensus estimate is calling for revenue of $5.5 billion, up 28.4% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.09 per share and revenue of $23.52 billion. These totals would mark changes of +43.72% and +15.9%, respectively, from last year.
Any recent changes to analyst estimates for Halliburton should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 0.35% higher within the past month. Halliburton is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Halliburton currently has a Forward P/E ratio of 10.14. Its industry sports an average Forward P/E of 11.7, so we one might conclude that Halliburton is trading at a discount comparatively.
We can also see that HAL currently has a PEG ratio of 0.23. 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. HAL's industry had an average PEG ratio of 0.42 as of yesterday's close.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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