Halliburton (HAL) Registers a Bigger Fall Than the Market: Important Facts to Note

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In the latest trading session, Halliburton (HAL) closed at $27.81, marking a -1.52% move from the previous day. This change lagged the S&P 500's daily loss of 0.92%. On the other hand, the Dow registered a loss of 0.96%, and the technology-centric Nasdaq decreased by 1.6%.

The the stock of provider of drilling services to oil and gas operators has fallen by 5.77% in the past month, leading the Oils-Energy sector's loss of 9.71% and undershooting the S&P 500's gain of 2.68%.

Market participants will be closely following the financial results of Halliburton in its upcoming release. The company plans to announce its earnings on November 7, 2024. It is anticipated that the company will report an EPS of $0.75, marking a 5.06% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $5.83 billion, reflecting a 0.37% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.12 per share and revenue of $23.37 billion, indicating changes of -0.32% and +1.54%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Halliburton should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 past month, there's been a 0.76% fall in the Zacks Consensus EPS estimate. As of now, Halliburton holds a Zacks Rank of #4 (Sell).

In the context of valuation, Halliburton is at present trading with a Forward P/E ratio of 9.05. This expresses a discount compared to the average Forward P/E of 17.78 of its industry.

We can additionally observe that HAL currently boasts a PEG ratio of 1.86. 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. By the end of yesterday's trading, the Oil and Gas - Field Services industry had an average PEG ratio of 1.13.