Schlumberger (SLB) closed at $49.88 in the latest trading session, marking a -1.87% move from the prior day. This change lagged the S&P 500's daily loss of 1.54%. Meanwhile, the Dow lost 1.45%, and the Nasdaq, a tech-heavy index, lost 0.16%.
Heading into today, shares of the world's largest oilfield services company had gained 0.75% over the past month, lagging the Oils-Energy sector's gain of 5.61% and the S&P 500's gain of 4.54% in that time.
Investors will be hoping for strength from Schlumberger as it approaches its next earnings release. The company is expected to report EPS of $0.68, up 65.85% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.75 billion, up 24.43% from the year-ago period.
SLB's full-year Zacks Consensus Estimates are calling for earnings of $2.14 per share and revenue of $27.9 billion. These results would represent year-over-year changes of +67.19% and +21.68%, respectively.
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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.09% higher. Schlumberger is currently a Zacks Rank #2 (Buy).
Digging into valuation, Schlumberger currently has a Forward P/E ratio of 23.76. This valuation marks a premium compared to its industry's average Forward P/E of 22.51.
It is also worth noting that SLB currently has a PEG ratio of 0.6. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Field Services was holding an average PEG ratio of 0.69 at yesterday's closing price.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 32, which puts it in the top 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.
To follow SLB in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report