Schlumberger (SLB) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Schlumberger (SLB) closed at $34, marking a +1.43% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.75%.
Coming into today, shares of the world's largest oilfield services company had gained 16.15% in the past month. In that same time, the Oils-Energy sector gained 14.35%, while the S&P 500 lost 0.05%.
Wall Street will be looking for positivity from SLB as it approaches its next earnings report date. This is expected to be October 22, 2021. The company is expected to report EPS of $0.35, up 118.75% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.93 billion, up 12.83% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.26 per share and revenue of $22.97 billion, which would represent changes of +85.29% and -2.68%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for SLB. Recent revisions tend to reflect the latest near-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. 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. Within the past 30 days, our consensus EPS projection has moved 0.67% higher. SLB is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note SLB's current valuation metrics, including its Forward P/E ratio of 26.59. This represents a discount compared to its industry's average Forward P/E of 31.9.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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