In the latest trading session, Schlumberger (SLB) closed at $51.89, marking a -0.17% move from the previous day. This change lagged the S&P 500's daily gain of 1.33%. At the same time, the Dow added 1.14%, and the tech-heavy Nasdaq gained 2.94%.
Prior to today's trading, shares of the world's largest oilfield services company had gained 14.69% over the past month. This has outpaced the Oils-Energy sector's gain of 3.53% and the S&P 500's gain of 6.11% in that time.
Wall Street will be looking for positivity from Schlumberger as it approaches its next earnings report date. This is expected to be April 21, 2023. The company is expected to report EPS of $0.61, up 79.41% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.53 billion, up 26.37% 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.
It is also important to note the recent changes to analyst estimates for Schlumberger. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 0.2% higher. Schlumberger is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Schlumberger has a Forward P/E ratio of 17.2 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.5.
We can also see that SLB currently has a PEG ratio of 0.45. 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. The Oil and Gas - Field Services industry currently had an average PEG ratio of 0.56 as of yesterday's close.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 41% 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.
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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