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Schlumberger (SLB) Dips More Than Broader Markets: What You Should Know

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Schlumberger (SLB - Free Report) closed at $28.86 in the latest trading session, marking a -1.3% move from the prior day. This change lagged the S&P 500's daily loss of 0.16%.

Coming into today, shares of the world's largest oilfield services company had gained 9.06% in the past month. In that same time, the Oils-Energy sector gained 3.37%, while the S&P 500 gained 0.46%.

Wall Street will be looking for positivity from SLB as it approaches its next earnings report date. In that report, analysts expect SLB to post earnings of $0.35 per share. This would mark year-over-year growth of 118.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.93 billion, up 12.83% from the year-ago period.

SLB's full-year Zacks Consensus Estimates are calling for earnings of $1.25 per share and revenue of $22.97 billion. These results would represent year-over-year changes of +83.82% and -2.68%, respectively.

Any recent changes to analyst estimates for SLB should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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, 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. The Zacks Consensus EPS estimate has moved 0.6% higher within the past month. SLB is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, SLB is currently trading at a Forward P/E ratio of 23.34. Its industry sports an average Forward P/E of 31.26, so we one might conclude that SLB is trading at a discount comparatively.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 196, putting it in the bottom 23% 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.


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