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Schlumberger (SLB) Gains But Lags Market: What You Should Know
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In the latest trading session, Schlumberger (SLB - Free Report) closed at $42.86, marking a +1.66% move from the previous day. This change lagged the S&P 500's 2.65% gain on the day. Elsewhere, the Dow gained 1.86%, while the tech-heavy Nasdaq added 0.24%.
Coming into today, shares of the world's largest oilfield services company had gained 9.88% in the past month. In that same time, the Oils-Energy sector lost 4.88%, while the S&P 500 lost 8.99%.
Investors will be hoping for strength from Schlumberger as it approaches its next earnings release, which is expected to be October 21, 2022. The company is expected to report EPS of $0.55, up 52.78% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.14 billion, up 22.17% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.03 per share and revenue of $27.25 billion. These totals would mark changes of +58.59% and +18.85%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Schlumberger. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate has moved 0.52% higher within the past month. Schlumberger currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Schlumberger is currently trading at a Forward P/E ratio of 20.8. Its industry sports an average Forward P/E of 20.83, so we one might conclude that Schlumberger is trading at a discount comparatively.
We can also see that SLB currently has a PEG ratio of 0.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Field Services was holding an average PEG ratio of 0.64 at yesterday's closing price.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 20, which puts it in the top 8% 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.
To follow SLB in the coming trading sessions, be sure to utilize Zacks.com.
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Schlumberger (SLB) Gains But Lags Market: What You Should Know
In the latest trading session, Schlumberger (SLB - Free Report) closed at $42.86, marking a +1.66% move from the previous day. This change lagged the S&P 500's 2.65% gain on the day. Elsewhere, the Dow gained 1.86%, while the tech-heavy Nasdaq added 0.24%.
Coming into today, shares of the world's largest oilfield services company had gained 9.88% in the past month. In that same time, the Oils-Energy sector lost 4.88%, while the S&P 500 lost 8.99%.
Investors will be hoping for strength from Schlumberger as it approaches its next earnings release, which is expected to be October 21, 2022. The company is expected to report EPS of $0.55, up 52.78% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.14 billion, up 22.17% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.03 per share and revenue of $27.25 billion. These totals would mark changes of +58.59% and +18.85%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Schlumberger. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate has moved 0.52% higher within the past month. Schlumberger currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Schlumberger is currently trading at a Forward P/E ratio of 20.8. Its industry sports an average Forward P/E of 20.83, so we one might conclude that Schlumberger is trading at a discount comparatively.
We can also see that SLB currently has a PEG ratio of 0.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Field Services was holding an average PEG ratio of 0.64 at yesterday's closing price.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 20, which puts it in the top 8% 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.
To follow SLB in the coming trading sessions, be sure to utilize Zacks.com.