Schlumberger (SLB) Outpaces Stock Market Gains: What You Should Know
Schlumberger (SLB) closed the most recent trading day at $17.98, moving +1.47% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.45%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.52%.
Prior to today's trading, shares of the world's largest oilfield services company had lost 9.64% over the past month. This has lagged the Oils-Energy sector's loss of 2.44% and the S&P 500's gain of 2.08% in that time.
Wall Street will be looking for positivity from SLB as it approaches its next earnings report date. This is expected to be July 24, 2020. The company is expected to report EPS of -$0.02, down 105.71% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.54 billion, down 32.98% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.13 per share and revenue of $23.45 billion, which would represent changes of -91.16% and -28.77%, respectively, from the prior year.
Any recent changes to analyst estimates for SLB should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 11.67% lower within the past month. SLB currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that SLB has a Forward P/E ratio of 133.74 right now. This valuation marks a premium compared to its industry's average Forward P/E of 29.39.
Meanwhile, SLB's PEG ratio is currently 20.36. 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. The Oil and Gas - Field Services industry currently had an average PEG ratio of 9.85 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 88, which puts it in the top 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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