Are Investors Undervaluing Halliburton (HAL) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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). HAL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 29.36. This compares to its industry's average Forward P/E of 46.71. HAL's Forward P/E has been as high as 110.55 and as low as -203.11, with a median of 12.25, all within the past year.
HAL is also sporting a PEG ratio of 4.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HAL's industry has an average PEG of 4.62 right now. HAL's PEG has been as high as 10.64 and as low as -19.55, with a median of 1.75, all within the past year.
These are just a handful of the figures considered in Halliburton's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that HAL is an impressive value stock right now.
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