Helmerich & Payne (HP) Gains But Lags Market: What You Should Know

·2 min read

In the latest trading session, Helmerich & Payne (HP) closed at $35.75, marking a +0.68% move from the previous day. The stock lagged the S&P 500's daily gain of 1.44%. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 5.21%.

Coming into today, shares of the oil and gas well-drilling contractor had lost 21.04% in the past month. In that same time, the Oils-Energy sector lost 2.11%, while the S&P 500 gained 2.28%.

Investors will be hoping for strength from Helmerich & Payne as it approaches its next earnings release. The company is expected to report EPS of $1.06, up 723.53% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $744.3 million, up 59.17% from the year-ago period.

HP's full-year Zacks Consensus Estimates are calling for earnings of $4.68 per share and revenue of $3.04 billion. These results would represent year-over-year changes of +4580% and +47.85%, respectively.

Any recent changes to analyst estimates for Helmerich & Payne should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Helmerich & Payne is currently a Zacks Rank #3 (Hold).

Investors should also note Helmerich & Payne's current valuation metrics, including its Forward P/E ratio of 7.59. This valuation marks a discount compared to its industry's average Forward P/E of 8.24.

The Oil and Gas - Drilling industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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