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Schlumberger (SLB) Ascends While Market Falls: Some Facts to Note

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In the latest trading session, Schlumberger (SLB - Free Report) closed at $41.17, marking a +0.51% move from the previous day. This move outpaced the S&P 500's daily loss of 0.61%. Elsewhere, the Dow saw a downswing of 0.54%, while the tech-heavy Nasdaq depreciated by 0.62%.

Heading into today, shares of the world's largest oilfield services company had lost 5.14% over the past month, lagging the Oils-Energy sector's loss of 1.49% and the S&P 500's gain of 2.85% in that time.

Market participants will be closely following the financial results of Schlumberger in its upcoming release. The company's upcoming EPS is projected at $0.91, signifying a 5.81% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $9.21 billion, indicating a 2.4% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.39 per share and revenue of $36.21 billion, which would represent changes of +13.76% and +9.27%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Schlumberger. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Schlumberger is currently sporting a Zacks Rank of #4 (Sell).

With respect to valuation, Schlumberger is currently being traded at a Forward P/E ratio of 12.07. This valuation marks a discount compared to its industry's average Forward P/E of 19.46.

We can additionally observe that SLB currently boasts a PEG ratio of 1.45. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Oil and Gas - Field Services industry held an average PEG ratio of 1.16.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 136, positioning it in the bottom 46% 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.

To follow SLB in the coming trading sessions, be sure to utilize Zacks.com.


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