Halliburton (HAL) Dips More Than Broader Market: What You Should Know

In the latest market close, Halliburton (HAL) reached $34.51, with a -1.99% movement compared to the previous day. This move lagged the S&P 500's daily loss of 0.15%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq gained 0.09%.

Coming into today, shares of the provider of drilling services to oil and gas operators had gained 1.27% in the past month. In that same time, the Oils-Energy sector gained 2.64%, while the S&P 500 gained 3.5%.

The upcoming earnings release of Halliburton will be of great interest to investors. The company's earnings report is expected on January 23, 2024. In that report, analysts expect Halliburton to post earnings of $0.80 per share. This would mark year-over-year growth of 11.11%. At the same time, our most recent consensus estimate is projecting a revenue of $5.79 billion, reflecting a 3.72% rise from the equivalent quarter last year.

Investors should also note any recent changes to analyst estimates for Halliburton. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.15% lower. Halliburton is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Halliburton is currently exchanging hands at a Forward P/E ratio of 10.22. This indicates a discount in contrast to its industry's Forward P/E of 13.46.

Investors should also note that HAL has a PEG ratio of 0.48 right now. 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. HAL's industry had an average PEG ratio of 0.69 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 168, putting it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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