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Schlumberger (SLB) Outpaces Stock Market Gains: What You Should Know

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Schlumberger (SLB - Free Report) closed the most recent trading day at $59.84, moving +1.36% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.4%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq gained 0.45%.

Coming into today, shares of the world's largest oilfield services company had gained 4.57% in the past month. In that same time, the Oils-Energy sector gained 3.39%, while the S&P 500 lost 1.38%.

Investors will be hoping for strength from Schlumberger as it approaches its next earnings release, which is expected to be October 20, 2023. In that report, analysts expect Schlumberger to post earnings of $0.77 per share. This would mark year-over-year growth of 22.22%. Our most recent consensus estimate is calling for quarterly revenue of $8.33 billion, up 11.44% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.98 per share and revenue of $32.92 billion. These totals would mark changes of +36.7% and +17.17%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Schlumberger. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.03% higher within the past month. Schlumberger is currently a Zacks Rank #2 (Buy).

Investors should also note Schlumberger's current valuation metrics, including its Forward P/E ratio of 19.78. For comparison, its industry has an average Forward P/E of 19.14, which means Schlumberger is trading at a premium to the group.

Meanwhile, SLB's PEG ratio is currently 0.74. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Field Services stocks are, on average, holding a PEG ratio of 0.74 based on yesterday's closing prices.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% 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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