Schlumberger (SLB) Stock Moves -1.93%: What You Should Know
In the latest trading session, Schlumberger (SLB) closed at $47.21, marking a -1.93% move from the previous day. This change was narrower than the S&P 500's 2.91% loss on the day. At the same time, the Dow lost 2.73%, and the tech-heavy Nasdaq lost 0.25%.
Coming into today, shares of the world's largest oilfield services company had gained 23.34% in the past month. In that same time, the Oils-Energy sector gained 16.13%, while the S&P 500 gained 0.84%.
Investors will be hoping for strength from Schlumberger as it approaches its next earnings release. On that day, Schlumberger is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 30%. Our most recent consensus estimate is calling for quarterly revenue of $6.27 billion, up 11.23% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.85 per share and revenue of $26.07 billion. These totals would mark changes of +44.53% and +13.71%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Schlumberger. 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.
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 #3 (Hold).
In terms of valuation, Schlumberger is currently trading at a Forward P/E ratio of 26.09. Its industry sports an average Forward P/E of 26.94, so we one might conclude that Schlumberger is trading at a discount comparatively.
Also, we should mention that SLB has a PEG ratio of 0.56. 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 0.56 as of yesterday's close.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% 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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