Schlumberger (SLB) Gains As Market Dips: What You Should Know
Schlumberger (SLB) closed the most recent trading day at $47.64, moving +1.86% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.16%. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq lost 3.64%.
Prior to today's trading, shares of the world's largest oilfield services company had lost 14.03% over the past month. This has lagged the Oils-Energy sector's loss of 6.61% and the S&P 500's gain of 0.07% 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. In that report, analysts expect Schlumberger to post earnings of $0.60 per share. This would mark year-over-year growth of 76.47%. Meanwhile, our latest consensus estimate is calling for revenue of $7.55 billion, up 26.64% from the prior-year quarter.
SLB's full-year Zacks Consensus Estimates are calling for earnings of $3.02 per share and revenue of $32.74 billion. These results would represent year-over-year changes of +38.53% and +16.54%, respectively.
Any recent changes to analyst estimates for Schlumberger should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 a Zacks Rank #3 (Hold).
Digging into valuation, Schlumberger currently has a Forward P/E ratio of 15.51. This represents a premium compared to its industry's average Forward P/E of 12.26.
We can also see that SLB currently has a PEG ratio of 0.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Field Services stocks are, on average, holding a PEG ratio of 0.41 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 146, which puts it in the bottom 43% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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