Halliburton (HAL) Rises As Market Takes a Dip: Key Facts

In the latest trading session, Halliburton (HAL) closed at $34.44, marking a +1.89% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.02%. At the same time, the Dow lost 0.21%, and the tech-heavy Nasdaq lost 0.08%.

Coming into today, shares of the provider of drilling services to oil and gas operators had gained 8.23% in the past month. In that same time, the Oils-Energy sector gained 1.07%, while the S&P 500 gained 3.67%.

The investment community will be closely monitoring the performance of Halliburton in its forthcoming earnings report. The company is predicted to post an EPS of $0.58, indicating constancy compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $5.59 billion, down 0.13% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.34 per share and revenue of $22.39 billion, which would represent changes of -3.31% and +0.94%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Halliburton. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.3% lower. Halliburton presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Halliburton currently has a Forward P/E ratio of 14.43. This represents a discount compared to its industry average Forward P/E of 23.61.

We can also see that HAL currently has a PEG ratio of 2.12. 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 the market closed yesterday, the Oil and Gas - Field Services industry was having an average PEG ratio of 1.92.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 153, this industry ranks in the bottom 38% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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