Schlumberger (SLB) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Schlumberger (SLB) closed at $47.40, marking a -1.82% move from the previous day. This change lagged the S&P 500's daily loss of 1.65%. Elsewhere, the Dow lost 1.63%, while the tech-heavy Nasdaq lost 6.65%.
Prior to today's trading, shares of the world's largest oilfield services company had lost 9.59% over the past month. This has lagged the Oils-Energy sector's loss of 4.55% and the S&P 500's gain of 0.3% in that time.
Investors will be hoping for strength from Schlumberger as it approaches its next earnings release, which is expected to be April 21, 2023. On that day, Schlumberger is projected to report earnings of $0.60 per share, which would represent year-over-year growth of 76.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.55 billion, up 26.64% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.02 per share and revenue of $32.74 billion, which would represent changes of +38.53% and +16.54%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Schlumberger. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Schlumberger is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Schlumberger currently has a Forward P/E ratio of 16.01. Its industry sports an average Forward P/E of 11.65, so we one might conclude that Schlumberger is trading at a premium comparatively.
Investors should also note that SLB has a PEG ratio of 0.42 right now. 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 was holding an average PEG ratio of 0.42 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 51, putting it in the top 21% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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