Back to top

Image: Bigstock

Schlumberger (SLB) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Schlumberger (SLB - Free Report) closed the most recent trading day at $26.78, moving +0.6% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.77%.

Coming into today, shares of the world's largest oilfield services company had lost 6.76% in the past month. In that same time, the Oils-Energy sector gained 0.11%, while the S&P 500 gained 1.55%.

SLB will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.35, up 118.75% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.93 billion, up 12.83% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.25 per share and revenue of $22.97 billion, which would represent changes of +83.82% and -2.68%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for SLB. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.6% higher. SLB is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, SLB currently has a Forward P/E ratio of 21.25. This valuation marks a discount compared to its industry's average Forward P/E of 30.13.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 214, putting it in the bottom 16% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Schlumberger Limited (SLB) - free report >>

Published in