Schlumberger (SLB) Registers a Bigger Fall Than the Market: Important Facts to Note

Schlumberger (SLB) ended the recent trading session at $48.56, demonstrating a -0.53% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.38%. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, lost 0.13%.

The world's largest oilfield services company's shares have seen a decrease of 7.75% over the last month, not keeping up with the Oils-Energy sector's gain of 5.11% and the S&P 500's gain of 4.74%.

The investment community will be closely monitoring the performance of Schlumberger in its forthcoming earnings report. The company is forecasted to report an EPS of $0.75, showcasing a 19.05% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $8.67 billion, up 12.06% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.54 per share and revenue of $37.29 billion. These totals would mark changes of +18.79% and +12.54%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Schlumberger. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.26% downward. Schlumberger is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Schlumberger has a Forward P/E ratio of 13.79 right now. This denotes a discount relative to the industry's average Forward P/E of 14.31.

Investors should also note that SLB has a PEG ratio of 0.88 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Oil and Gas - Field Services was holding an average PEG ratio of 0.88 at yesterday's closing price.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 31% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

4 Oil Stocks with Massive Upsides

Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold." 

Zacks Investment Research has just released an urgent special report to help you bank on this trend. 

In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations. 

Download your free report now to see them.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Schlumberger Limited (SLB) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.