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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 $27.15, marking a +0.82% move from the previous day. The stock lagged the S&P 500's daily gain of 0.95%.

Heading into today, shares of the world's largest oilfield services company had lost 4.57% over the past month, lagging the Oils-Energy sector's gain of 5.52% and the S&P 500's loss of 1.87% in that time.

Investors will be hoping for strength from SLB as it approaches its next earnings release. The company is expected to report EPS of $0.35, up 118.75% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.93 billion, up 12.83% from the year-ago period.

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. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 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 0.6% higher within the past month. SLB is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that SLB has a Forward P/E ratio of 21.5 right now. For comparison, its industry has an average Forward P/E of 29.61, which means SLB is trading at a discount to the group.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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