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Schlumberger (SLB) Dips More Than Broader Markets: What You Should Know

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Schlumberger (SLB - Free Report) closed at $28.04 in the latest trading session, marking a -0.85% move from the prior day. This move lagged the S&P 500's daily loss of 0.14%.

Heading into today, shares of the world's largest oilfield services company had lost 0.77% over the past month, lagging the Oils-Energy sector's gain of 0.71% and the S&P 500's gain of 3.13% in that time.

SLB will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.35, up 118.75% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.92 billion, up 12.56% from the year-ago period.

SLB's full-year Zacks Consensus Estimates are calling for earnings of $1.25 per share and revenue of $22.92 billion. These results would represent year-over-year changes of +83.82% and -2.88%, respectively.

It is also important to note the recent changes to analyst estimates for SLB. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.43% higher. SLB is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, SLB currently has a Forward P/E ratio of 22.72. For comparison, its industry has an average Forward P/E of 29.81, which means SLB is trading at a discount to the group.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 222, putting it in the bottom 13% 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.


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