Schlumberger (SLB) closed at $38.23 in the latest trading session, marking a +1.73% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.12%.
Coming into today, shares of the world's largest oilfield services company had lost 5.84% in the past month. In that same time, the Oils-Energy sector lost 4.09%, while the S&P 500 lost 10.24%.
Wall Street will be looking for positivity from Schlumberger as it approaches its next earnings report date. This is expected to be October 21, 2022. The company is expected to report EPS of $0.54, up 50% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.1 billion, up 21.48% from the prior-year quarter.
SLB's full-year Zacks Consensus Estimates are calling for earnings of $2.02 per share and revenue of $27.25 billion. These results would represent year-over-year changes of +57.81% and +18.86%, respectively.
Any recent changes to analyst estimates for Schlumberger should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Schlumberger is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Schlumberger is currently trading at a Forward P/E ratio of 18.64. This valuation marks a premium compared to its industry's average Forward P/E of 17.27.
Also, we should mention that SLB has a PEG ratio of 0.48. 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. SLB's industry had an average PEG ratio of 0.6 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 20, which puts it in the top 8% 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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