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Schlumberger (SLB) Gains But Lags Market: What You Should Know

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Schlumberger (SLB - Free Report) ended the recent trading session at $41.70, demonstrating a +1.73% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 1.77%. On the other hand, the Dow registered a gain of 1.42%, and the technology-centric Nasdaq increased by 2.28%.

Heading into today, shares of the world's largest oilfield services company had lost 1.8% over the past month, lagging the Oils-Energy sector's gain of 0.43% and outpacing the S&P 500's loss of 5.73% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Schlumberger in its upcoming earnings disclosure. On that day, Schlumberger is projected to report earnings of $0.74 per share, which would represent a year-over-year decline of 1.33%. Meanwhile, the latest consensus estimate predicts the revenue to be $8.62 billion, indicating a 0.96% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.38 per share and revenue of $38.5 billion, which would represent changes of -0.88% and +6.09%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Schlumberger. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% higher. Schlumberger is currently a Zacks Rank #3 (Hold).

Digging into valuation, Schlumberger currently has a Forward P/E ratio of 12.12. This signifies a discount in comparison to the average Forward P/E of 13.59 for its industry.

We can also see that SLB currently has a PEG ratio of 9.7. 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. The Oil and Gas - Field Services industry currently had an average PEG ratio of 1.64 as of yesterday's close.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 132, positioning it in the bottom 48% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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