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Schlumberger (SLB) Stock Declines While Market Improves: Some Information for Investors

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Schlumberger (SLB - Free Report) closed the latest trading day at $43.63, indicating a -0.71% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.25%. Meanwhile, the Dow experienced a drop of 0.29%, and the technology-dominated Nasdaq saw an increase of 0.97%.

The the stock of world's largest oilfield services company has risen by 10.51% in the past month, leading the Oils-Energy sector's gain of 6.07% and the S&P 500's gain of 3.51%.

The investment community will be paying close attention to the earnings performance of Schlumberger in its upcoming release. In that report, analysts expect Schlumberger to post earnings of $0.91 per share. This would mark year-over-year growth of 5.81%. At the same time, our most recent consensus estimate is projecting a revenue of $9.21 billion, reflecting a 2.4% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.39 per share and revenue of $36.21 billion, indicating changes of +13.76% and +9.27%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Schlumberger. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Schlumberger is currently sporting a Zacks Rank of #5 (Strong Sell).

In the context of valuation, Schlumberger is at present trading with a Forward P/E ratio of 12.94. This indicates a discount in contrast to its industry's Forward P/E of 21.49.

One should further note that SLB currently holds a PEG ratio of 1.55. 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 1.21 based on yesterday's closing prices.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 137, which puts it in the bottom 46% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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