In the latest trading session, Schlumberger (SLB - Free Report) closed at $19.32, marking a +1.68% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.83%. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 1.43%.
Wall Street will be looking for positivity from SLB as it approaches its next earnings report date. This is expected to be July 24, 2020. In that report, analysts expect SLB to post earnings of -$0.02 per share. This would mark a year-over-year decline of 105.71%. Meanwhile, our latest consensus estimate is calling for revenue of $5.78 billion, down 30.09% from the prior-year quarter.
SLB's full-year Zacks Consensus Estimates are calling for earnings of $0.15 per share and revenue of $23.92 billion. These results would represent year-over-year changes of -89.8% and -27.35%, respectively.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 1.79% lower within the past month. SLB is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that SLB has a Forward P/E ratio of 126.67 right now. Its industry sports an average Forward P/E of 33.88, so we one might conclude that SLB is trading at a premium comparatively.
We can also see that SLB currently has a PEG ratio of 19.28. 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. Oil and Gas - Field Services stocks are, on average, holding a PEG ratio of 10.89 based on yesterday's closing prices.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.