Schlumberger (SLB) closed at $50.88 in the latest trading session, marking a -0.97% move from the prior day. This change was narrower than the S&P 500's 1.44% loss on the day. At the same time, the Dow lost 1.03%, and the tech-heavy Nasdaq lost 0.2%.
Prior to today's trading, shares of the world's largest oilfield services company had lost 6.26% over the past month. This has lagged the Oils-Energy sector's loss of 2.49% and the S&P 500's gain of 6.22% 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.15 per share and revenue of $27.9 billion. These totals would mark changes of +67.97% and +21.68%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Schlumberger. These revisions help to show the ever-changing nature of near-term business trends. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.17% higher. Schlumberger is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, Schlumberger is currently trading at a Forward P/E ratio of 23.86. For comparison, its industry has an average Forward P/E of 23.02, which means Schlumberger is trading at a premium to the group.
Investors should also note that SLB has a PEG ratio of 0.6 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. SLB's industry had an average PEG ratio of 0.69 as of yesterday's close.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 21, putting it in the top 9% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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