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Schlumberger (SLB) Laps the Stock Market: Here's Why

In the latest market close, Schlumberger (SLB) reached $44.98, with a +0.97% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.26%. At the same time, the Dow added 0.18%, and the tech-heavy Nasdaq gained 0.35%.

The the stock of world's largest oilfield services company has fallen by 8.14% in the past month, lagging the Oils-Energy sector's loss of 3.91% and the S&P 500's gain of 3.25%.

Analysts and investors alike will be keeping a close eye on the performance of Schlumberger in its upcoming earnings disclosure. In that report, analysts expect Schlumberger to post earnings of $0.83 per share. This would mark year-over-year growth of 15.28%. Alongside, our most recent consensus estimate is anticipating revenue of $9.07 billion, indicating a 12.03% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.51 per share and revenue of $37.18 billion, which would represent changes of +17.79% and +12.21%, respectively, from the prior year.

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Investors might also notice recent changes to analyst estimates for Schlumberger. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Schlumberger possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Schlumberger is presently trading at a Forward P/E ratio of 12.69. This denotes a discount relative to the industry's average Forward P/E of 16.2.

It is also worth noting that SLB currently has a PEG ratio of 0.86. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Oil and Gas - Field Services was holding an average PEG ratio of 0.88 at yesterday's closing price.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 163, placing it within the bottom 36% of over 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.

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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Schlumberger Limited (SLB) : Free Stock Analysis Report

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Zacks Investment Research