Schlumberger (SLB) Gains But Lags Market: What You Should Know
Schlumberger (SLB) closed the most recent trading day at $51.70, moving +0.39% from the previous trading session. This change lagged the S&P 500's 0.75% gain on the day. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 10.36%.
Coming into today, shares of the world's largest oilfield services company had gained 1.22% in the past month. In that same time, the Oils-Energy sector lost 6.78%, while the S&P 500 lost 5.98%.
Schlumberger will be looking to display strength as it nears its next earnings release, which is expected to be January 20, 2023. In that report, analysts expect Schlumberger to post earnings of $0.69 per share. This would mark year-over-year growth of 68.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.83 billion, up 25.8% from the year-ago period.
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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.19% higher. Schlumberger is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Schlumberger is holding a Forward P/E ratio of 16.99. This represents a premium compared to its industry's average Forward P/E of 12.43.
Meanwhile, SLB's PEG ratio is currently 0.43. 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 0.4 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 41, which puts it in the top 17% 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.
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Schlumberger Limited (SLB) : Free Stock Analysis Report
