HP's 15-minute chart shows RSI overbought and KDJ death cross.

HP's 15-minute chart has triggered an RSI overbought signal, accompanied by a KDJ death cross as of August 8, 2025, at 12:30. This indicates that the stock price has risen too quickly and exceeds its fundamental support levels, suggesting that the momentum is shifting towards the downside, potentially leading to a further decline in the stock price.

Helmerich & Payne (HP), an oil and gas well-drilling contractor, reported strong quarterly earnings for the period ended June 2025, beating the Zacks Consensus Estimate by a significant margin. The company posted earnings of $0.22 per share, which exceeded the estimated $0.20 per share. This represents a 10% earnings surprise, a notable improvement from the previous quarter's earnings of $0.02 per share, which missed expectations by -96.92% [1].

Revenue for the quarter also exceeded expectations, with $1.04 billion in revenue surpassing the Zacks Consensus Estimate by 4.17%. This compares favorably to the year-ago revenue of $697.72 million. Over the last four quarters, Helmerich & Payne has consistently topped consensus revenue estimates three times [1].

Despite the positive earnings report, the stock has underperformed the market so far this year, losing about 51.3% of its value compared to the S&P 500's gain of 7.1%. The immediate future for the stock will largely depend on management's commentary during the earnings call and the sustainability of the current earnings momentum.

The Zacks Rank, a widely-used rating tool, currently assigns a Zacks Rank #4 (Sell) to Helmerich & Payne, indicating that the stock is expected to underperform the market in the near future. This ranking is influenced by the unfavorable estimate revisions trend leading up to the earnings report. The current consensus EPS estimate for the coming quarter is $0.14, and for the current fiscal year, it is $1.10. The Zacks Industry Rank for the Oil and Gas - Drilling sector is currently in the bottom 15% of the 250 plus Zacks industries, suggesting that the sector's overall performance may not be favorable [1].

Investors should also consider the impact of institutional ownership on the stock's price movement. With the top 16 shareholders owning 51% of the company, institutional investors hold significant sway over the stock's performance. The recent 5.4% drop in share price last week, adding to the one-year loss of 22%, has likely put pressure on institutional shareholders, who may face pressures to sell, potentially leading to further downside risk [2].

In summary, while Helmerich & Payne's earnings report was strong, the market sentiment remains bearish due to the stock's underperformance, unfavorable Zacks Rank, and significant institutional ownership. Investors should closely monitor management's commentary and future earnings expectations to gauge the stock's potential for recovery.

References:
[1] https://finance.yahoo.com/news/helmerich-payne-hp-surpasses-q3-213003026.html
[2] https://finance.yahoo.com/news/wake-hp-inc-nyse-hpq-134750669.html