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Schlumberger (SLB) Gains As Market Dips: What You Should Know

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Schlumberger (SLB) closed at $46.68 in the latest trading session, marking a +1.57% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.75%. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, added 0.24%.

Heading into today, shares of the world's largest oilfield services company had gained 14.47% over the past month, outpacing the Oils-Energy sector's gain of 12.75% and the S&P 500's gain of 0.32% in that time.

Schlumberger will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.39, up 30% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.27 billion, up 11.23% from the year-ago period.

SLB's full-year Zacks Consensus Estimates are calling for earnings of $1.85 per share and revenue of $26.07 billion. These results would represent year-over-year changes of +44.53% and +13.71%, respectively.

Investors might also notice recent changes to analyst estimates for Schlumberger. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.49% lower. Schlumberger is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Schlumberger is holding a Forward P/E ratio of 24.91. Its industry sports an average Forward P/E of 25.29, so we one might conclude that Schlumberger is trading at a discount comparatively.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% 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.

To follow SLB in the coming trading sessions, be sure to utilize Zacks.com.


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