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Schlumberger (SLB) Gains As Market Dips: What You Should Know

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Schlumberger (SLB - Free Report) closed at $29.70 in the latest trading session, marking a +1.33% move from the prior day. This change outpaced the S&P 500's 0.87% loss on the day. Elsewhere, the Dow lost 0.08%, while the tech-heavy Nasdaq lost 0.43%.

Prior to today's trading, shares of the world's largest oilfield services company had lost 8.58% over the past month. This has lagged the Oils-Energy sector's loss of 4.84% and the S&P 500's gain of 0.7% in that time.

Wall Street will be looking for positivity from Schlumberger as it approaches its next earnings report date. On that day, Schlumberger is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 77.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.09 billion, up 10.02% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.26 per share and revenue of $22.79 billion. These totals would mark changes of +85.29% and -3.43%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Schlumberger. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. Schlumberger is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Schlumberger has a Forward P/E ratio of 23.22 right now. Its industry sports an average Forward P/E of 33.07, so we one might conclude that Schlumberger is trading at a discount comparatively.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 119, putting it in the top 47% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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