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SLB Outperforms Industry in 6 Months: What Investors Should Know
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Key Takeaways
SLB outperformed the oil-energy sector and peers over the past six months.
SLB trades above its 50-day SMA and has a VGM Score of B, showing value and positive earnings surprises.
Strong global exposure, new energy ventures and data center growth support SLB despite oil price risks
Shares of SLB (SLB - Free Report) have fallen 6.5% in the past six months, outperforming the oil-energy sector’s decline of 8.2%. The company also outperformed its peers, Core Laboratories (CLB - Free Report) and Oceaneering International, Inc. (OII - Free Report) , which have lost 27.3% and 17.3%, respectively, over the same time frame.
Image Source: Zacks Investment Research
SLB is trading above its 50-day simple moving average (SMA), signaling a bullish trend.
SLB’s 50-Day SMA
Image Source: Zacks Investment Research
The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as it is the first marker of a stock’s uptrend or downtrend.
Should you consider adding the SLB stock to your portfolio only based on positive price movements? Let us delve deeper and find out the factors that can help investors decide whether it is a good entry point to add the SLB stock to their portfolios.
VGM Scores
At this time, SLB has a Value Score of B, although it is lagging slightly on the Momentum Score, with a C.
Overall, the stock has an aggregate VGM Score of B. If you are not focused on one strategy, this score is the one you should be interested in.
SLB’s Impressive Earnings Surprise History
SLB’s bottom line surpassed earnings estimates in three of the last four quarters and missed in one, the average being 0.77%.
Average Target Price for SLB Suggests Upside
Based on short-term price targets offered by 27 analysts, the Zacks average price target is $48.50 per share. The average suggests a 35.29% upside from the last closing price.
Image Source: Zacks Investment Research
Factors to Consider
SLB’s strong exposure to the profitable international market stands out. As a top provider of technology for complex oilfield developments, the company holds a competitive edge over many peers in securing new offshore projects in shallow water basins beyond North America. Its emphasis on long-term agreements with state-owned companies and integrated energy firms adds revenue stability and predictability.
SLB’s broad international footprint offsets local market weakness. While activity in Mexico, Saudi Arabia and Russia weighed on results, revenues in other key regions such as the UAE, North Africa, Kuwait, Argentina and China posted double-digit growth. This diverse exposure underpins more stable earnings amid local market disruptions and helps balance regional investment cycles.
SLB’s New Energy portfolio, which covers carbon capture, geothermal, and critical minerals, is gaining commercial traction. Together with the data center business, these segments are on track to deliver more than $1 billion in annual revenues in 2025, reflecting SLB’s push to build a resilient, diversified portfolio aligned with global decarbonization trends.
The company’s ongoing cost-out initiatives and process enhancements underpin robust margin control. Despite a 3% year-over-year decline in total revenues in the first quarter of 2025, SLB expanded its adjusted EBITDA margin by 18 basis points to 23.8%. It remains committed to further margin gains in 2025. Tight cost discipline helps safeguard cash flow and profitability during market downturns and positions the company to capture more upside when activity recovers.
SLB’s diversification strategy beyond oil and gas is gaining traction, with its data center infrastructure solutions business showing strong growth, particularly in North America. Leveraging relationships with hyperscalers, SLB secured significant contracts for modular cooling systems, contributing meaningfully to first-quarter results. This fast-growing segment is driven by global AI demand and offers high-margin opportunities, positioning SLB for long-term revenue expansion beyond traditional energy markets.
Headwind for SLB
As a leading company in the oilfield services sector, SLB’s financial results are heavily influenced by the state of the oil and gas industry. According to the U.S. Energy Information Administration, an oversupplied market is expected to keep oil prices subdued over the next two years. Prolonged weak oil prices can slow upstream investment activity, which may reduce the demand for SLB’s services. This, in turn, can lead to lower revenues and earnings for the company.
Image: Shutterstock
SLB Outperforms Industry in 6 Months: What Investors Should Know
Key Takeaways
Shares of SLB (SLB - Free Report) have fallen 6.5% in the past six months, outperforming the oil-energy sector’s decline of 8.2%. The company also outperformed its peers, Core Laboratories (CLB - Free Report) and Oceaneering International, Inc. (OII - Free Report) , which have lost 27.3% and 17.3%, respectively, over the same time frame.
Image Source: Zacks Investment Research
SLB is trading above its 50-day simple moving average (SMA), signaling a bullish trend.
SLB’s 50-Day SMA
Image Source: Zacks Investment Research
The 50-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as it is the first marker of a stock’s uptrend or downtrend.
Should you consider adding the SLB stock to your portfolio only based on positive price movements? Let us delve deeper and find out the factors that can help investors decide whether it is a good entry point to add the SLB stock to their portfolios.
VGM Scores
At this time, SLB has a Value Score of B, although it is lagging slightly on the Momentum Score, with a C.
Overall, the stock has an aggregate VGM Score of B. If you are not focused on one strategy, this score is the one you should be interested in.
SLB’s Impressive Earnings Surprise History
SLB’s bottom line surpassed earnings estimates in three of the last four quarters and missed in one, the average being 0.77%.
Average Target Price for SLB Suggests Upside
Based on short-term price targets offered by 27 analysts, the Zacks average price target is $48.50 per share. The average suggests a 35.29% upside from the last closing price.
Image Source: Zacks Investment Research
Factors to Consider
SLB’s strong exposure to the profitable international market stands out. As a top provider of technology for complex oilfield developments, the company holds a competitive edge over many peers in securing new offshore projects in shallow water basins beyond North America. Its emphasis on long-term agreements with state-owned companies and integrated energy firms adds revenue stability and predictability.
SLB’s broad international footprint offsets local market weakness. While activity in Mexico, Saudi Arabia and Russia weighed on results, revenues in other key regions such as the UAE, North Africa, Kuwait, Argentina and China posted double-digit growth. This diverse exposure underpins more stable earnings amid local market disruptions and helps balance regional investment cycles.
SLB’s New Energy portfolio, which covers carbon capture, geothermal, and critical minerals, is gaining commercial traction. Together with the data center business, these segments are on track to deliver more than $1 billion in annual revenues in 2025, reflecting SLB’s push to build a resilient, diversified portfolio aligned with global decarbonization trends.
The company’s ongoing cost-out initiatives and process enhancements underpin robust margin control. Despite a 3% year-over-year decline in total revenues in the first quarter of 2025, SLB expanded its adjusted EBITDA margin by 18 basis points to 23.8%. It remains committed to further margin gains in 2025. Tight cost discipline helps safeguard cash flow and profitability during market downturns and positions the company to capture more upside when activity recovers.
SLB’s diversification strategy beyond oil and gas is gaining traction, with its data center infrastructure solutions business showing strong growth, particularly in North America. Leveraging relationships with hyperscalers, SLB secured significant contracts for modular cooling systems, contributing meaningfully to first-quarter results. This fast-growing segment is driven by global AI demand and offers high-margin opportunities, positioning SLB for long-term revenue expansion beyond traditional energy markets.
Headwind for SLB
As a leading company in the oilfield services sector, SLB’s financial results are heavily influenced by the state of the oil and gas industry. According to the U.S. Energy Information Administration, an oversupplied market is expected to keep oil prices subdued over the next two years. Prolonged weak oil prices can slow upstream investment activity, which may reduce the demand for SLB’s services. This, in turn, can lead to lower revenues and earnings for the company.
Hence, it is better to stay cautious about this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.