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What do the Fundamentals Predict for Halliburton Company (HAL) Stock?

Monday, March 25, 2024 03:13 PM | InvestorsObserver Analysts

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What do the Fundamentals Predict for Halliburton Company (HAL) Stock?

Halliburton Company (HAL) receives a strong valuation ranking of 97 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. HAL has a better value than 97% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 97
HAL gets a 97 Valuation Rank today. Find out what this means to you and get the rest of the rankings on HAL!

Metrics Analysis

HAL has a trailing twelve month Price to Earnings (PE) ratio of 12.98 which places it around the histroical average of roughly 15. HAL is currently trading at a average value due to investors paying around what the stock is worth in relation to its earnings. HAL's trailing-12-month earnings per share (EPS) of 2.93 does justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far.
HAL has a 12 month forward PE to Growth (PEG) ratio of 0.96. Markets are overvaluing HAL in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 2.93's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.

Summary

HAL' has a adequate valuation at its current share price on account of a fairly valued PEG ratio despite strong growth. HAL's PE and PEG are around the market average leading to a average valuation score. Click Here to get the full Report on Halliburton Company (HAL) stock.

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