In the latest trading session, Schlumberger (SLB - Free Report) closed at $35.70, marking a -1.38% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.06%. Meanwhile, the Dow lost 1.81%, and the Nasdaq, a tech-heavy index, lost 2.99%.
Heading into today, shares of the world's largest oilfield services company had lost 24.01% over the past month, lagging the Oils-Energy sector's loss of 9.78% and the S&P 500's loss of 6.47% in that time.
Wall Street will be looking for positivity from SLB as it approaches its next earnings report date. This is expected to be January 18, 2019. The company is expected to report EPS of $0.38, down 20.83% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.18 billion, up 0.01% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.65 per share and revenue of $32.84 billion, which would represent changes of +10% and +7.88%, respectively, from the prior year.
Any recent changes to analyst estimates for SLB should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 2.29% lower within the past month. SLB is holding a Zacks Rank of #5 (Strong Sell) right now.
In terms of valuation, SLB is currently trading at a Forward P/E ratio of 21.94. This represents a premium compared to its industry's average Forward P/E of 15.47.
Meanwhile, SLB's PEG ratio is currently 3.66. 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. Oil and Gas - Field Services stocks are, on average, holding a PEG ratio of 1.92 based on yesterday's closing prices.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 190, which puts it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.