In the latest trading session, Schlumberger (SLB - Free Report) closed at $39.86, marking a +1.14% move from the previous day. This change outpaced the S&P 500's 0.67% gain on the day. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 0.81%.
Heading into today, shares of the world's largest oilfield services company had gained 2.63% over the past month, lagging the Oils-Energy sector's gain of 5.86% and the S&P 500's gain of 3.55% in that time.
SLB will be looking to display strength as it nears its next earnings release, which is expected to be January 17, 2020. The company is expected to report EPS of $0.37, up 2.78% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.19 billion, up 0.1% from the year-ago period.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Within the past 30 days, our consensus EPS projection has moved 5.54% lower. SLB is holding a Zacks Rank of #5 (Strong Sell) right now.
Digging into valuation, SLB currently has a Forward P/E ratio of 23.77. Its industry sports an average Forward P/E of 21.11, so we one might conclude that SLB is trading at a premium comparatively.
Meanwhile, SLB's PEG ratio is currently 2.61. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Field Services industry currently had an average PEG ratio of 2.24 as of yesterday's close.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 228, putting it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.