Schlumberger (SLB Quick QuoteSLB - Free Report) shares ended the last trading session 7.7% higher at $35.46. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 16% gain over the past four weeks.

The stock jumped after it provided encouraging forecasts in the Bernstein Strategic Decisions Conference 2021. The oilfield service provider expects an adjusted EBITDA margin for 2021 within 20.8-21.3%, signaling a rise from 18.3% in 2020. As Schlumberger expects oil activities to improve in the coming days, demand for oilfield services will likely get a boost. The situation will, in turn, enable the company to raise prices for services and products.

Price and Consensus

This world's largest oilfield services company is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of +400%. Revenues are expected to be $5.46 billion, up 2% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Schlumberger, the consensus EPS estimate for the quarter has been revised 0.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on SLB going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>