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

Halliburton (HAL) closed the most recent trading day at $21.42, moving -0.23% from the previous trading session. This move lagged the S&P 500's daily gain of 0.15%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.05%.

Coming into today, shares of the provider of drilling services to oil and gas operators had gained 4.22% in the past month. In that same time, the Oils-Energy sector lost 3.73%, while the S&P 500 gained 1.32%.

Investors will be hoping for strength from HAL as it approaches its next earnings release, which is expected to be January 21, 2020. In that report, analysts expect HAL to post earnings of $0.30 per share. This would mark a year-over-year decline of 26.83%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.12 billion, down 13.76% from the year-ago period.

HAL's full-year Zacks Consensus Estimates are calling for earnings of $1.22 per share and revenue of $22.31 billion. These results would represent year-over-year changes of -35.79% and -7%, respectively.

It is also important to note the recent changes to analyst estimates for HAL. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.69% lower. HAL is currently a Zacks Rank #5 (Strong Sell).

Digging into valuation, HAL currently has a Forward P/E ratio of 17.53. For comparison, its industry has an average Forward P/E of 21.35, which means HAL is trading at a discount to the group.

It is also worth noting that HAL currently has a PEG ratio of 4.03. 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 had an average PEG ratio of 2.66 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 243, putting it in the bottom 5% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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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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