Schlumberger (SLB) closed the most recent trading day at $31.59, moving -1.37% from the previous trading session. This change lagged the S&P 500's 1.1% gain on the day. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 1.32%.
Coming into today, shares of the world's largest oilfield services company had lost 19.83% in the past month. In that same time, the Oils-Energy sector lost 12.32%, while the S&P 500 lost 5.05%.
Investors will be hoping for strength from SLB as it approaches its next earnings release. The company is expected to report EPS of $0.41, down 10.87% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.53 billion, up 0.28% from the year-ago period.
SLB's full-year Zacks Consensus Estimates are calling for earnings of $1.51 per share and revenue of $33.38 billion. These results would represent year-over-year changes of -6.79% and +1.72%, respectively.
Investors should also note any recent changes to analyst estimates for SLB. 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. 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 0.04% higher within the past month. SLB is currently a Zacks Rank #3 (Hold).
Looking at its valuation, SLB is holding a Forward P/E ratio of 21.23. Its industry sports an average Forward P/E of 18.68, so we one might conclude that SLB is trading at a premium comparatively.
Investors should also note that SLB has a PEG ratio of 2.01 right now. 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 was holding an average PEG ratio of 2.09 at yesterday's closing price.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 208, which puts it in the bottom 19% 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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