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Schlumberger (SLB) Rises Higher Than Market: Key Facts

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Schlumberger (SLB - Free Report) closed at $46.53 in the latest trading session, marking a +0.63% move from the prior day. This move outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow saw a downswing of 0.56%, while the tech-heavy Nasdaq appreciated by 0.59%.

The the stock of world's largest oilfield services company has fallen by 6.04% in the past month, lagging the Oils-Energy sector's loss of 2.98% and the S&P 500's gain of 4.19%.

The investment community will be paying close attention to the earnings performance of Schlumberger in its upcoming release. The company is expected to report EPS of $0.83, up 15.28% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $9.07 billion, up 12.03% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.51 per share and revenue of $37.18 billion. These totals would mark changes of +17.79% and +12.21%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Schlumberger. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.11% lower. Currently, Schlumberger is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Schlumberger is presently being traded at a Forward P/E ratio of 13.18. This valuation marks a discount compared to its industry's average Forward P/E of 16.61.

One should further note that SLB currently holds a PEG ratio of 0.89. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Oil and Gas - Field Services industry had an average PEG ratio of 0.91 as trading concluded yesterday.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 171, finds itself in the bottom 33% echelons 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.

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