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Schlumberger (SLB) Outperforms Broader Market: What You Need to Know

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The most recent trading session ended with Schlumberger (SLB - Free Report) standing at $55.03, reflecting a +1.4% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 1.11% for the day. Meanwhile, the Dow experienced a rise of 0.8%, and the technology-dominated Nasdaq saw an increase of 1.24%.

The world's largest oilfield services company's shares have seen an increase of 6.87% over the last month, not keeping up with the Oils-Energy sector's gain of 10.33% and outstripping the S&P 500's gain of 0.48%.

The investment community will be closely monitoring the performance of Schlumberger in its forthcoming earnings report. The company is scheduled to release its earnings on April 19, 2024. The company's upcoming EPS is projected at $0.75, signifying a 19.05% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.69 billion, up 12.37% from the year-ago period.

SLB's full-year Zacks Consensus Estimates are calling for earnings of $3.54 per share and revenue of $37.3 billion. These results would represent year-over-year changes of +18.79% and +12.57%, respectively.

It is also important to note the recent changes to analyst estimates for Schlumberger. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been a 0.09% fall in the Zacks Consensus EPS estimate. As of now, Schlumberger holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Schlumberger is currently exchanging hands at a Forward P/E ratio of 15.34. This signifies a discount in comparison to the average Forward P/E of 17.63 for its industry.

We can additionally observe that SLB currently boasts a PEG ratio of 0.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Oil and Gas - Field Services industry was having an average PEG ratio of 1.02.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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