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HAL vs. SLB: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Oil and Gas - Field Services sector have probably already heard of Halliburton (HAL - Free Report) and Schlumberger (SLB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Halliburton has a Zacks Rank of #2 (Buy), while Schlumberger has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HAL has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
HAL currently has a forward P/E ratio of 12.17, while SLB has a forward P/E of 18.20. We also note that HAL has a PEG ratio of 0.28. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SLB currently has a PEG ratio of 0.48.
Another notable valuation metric for HAL is its P/B ratio of 4.27. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SLB has a P/B of 4.33.
Based on these metrics and many more, HAL holds a Value grade of B, while SLB has a Value grade of C.
HAL stands above SLB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HAL is the superior value option right now.
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HAL vs. SLB: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Oil and Gas - Field Services sector have probably already heard of Halliburton (HAL - Free Report) and Schlumberger (SLB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Halliburton has a Zacks Rank of #2 (Buy), while Schlumberger has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HAL has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
HAL currently has a forward P/E ratio of 12.17, while SLB has a forward P/E of 18.20. We also note that HAL has a PEG ratio of 0.28. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SLB currently has a PEG ratio of 0.48.
Another notable valuation metric for HAL is its P/B ratio of 4.27. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SLB has a P/B of 4.33.
Based on these metrics and many more, HAL holds a Value grade of B, while SLB has a Value grade of C.
HAL stands above SLB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HAL is the superior value option right now.