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Schlumberger (SLB) Declines More Than Market: Some Information for Investors

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Schlumberger (SLB - Free Report) ended the recent trading session at $52.03, demonstrating a -0.69% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.54%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq lost 0.84%.

Coming into today, shares of the world's largest oilfield services company had lost 7.88% in the past month. In that same time, the Oils-Energy sector gained 1.44%, while the S&P 500 gained 8.62%.

The investment community will be paying close attention to the earnings performance of Schlumberger in its upcoming release. On that day, Schlumberger is projected to report earnings of $0.84 per share, which would represent year-over-year growth of 18.31%. Meanwhile, our latest consensus estimate is calling for revenue of $9 billion, up 14.21% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.97 per share and a revenue of $33.12 billion, representing changes of +36.24% and +17.91%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Schlumberger. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Schlumberger is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Schlumberger is holding a Forward P/E ratio of 17.66. This valuation marks a premium compared to its industry's average Forward P/E of 17.22.

Investors should also note that SLB has a PEG ratio of 0.71 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Oil and Gas - Field Services industry currently had an average PEG ratio of 0.71 as of yesterday's close.

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 24% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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