In the latest trading session, Schlumberger (SLB) closed at $35.85, marking a -0.94% move from the previous day. This change lagged the S&P 500's daily gain of 0.15%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 0.05%.
Prior to today's trading, shares of the world's largest oilfield services company had gained 1.77% over the past month. This has outpaced the Oils-Energy sector's loss of 3.73% and the S&P 500's gain of 1.32% in that time.
SLB will be looking to display strength as it nears its next earnings release. In that report, analysts expect SLB to post earnings of $0.38 per share. This would mark year-over-year growth of 5.56%. Meanwhile, our latest consensus estimate is calling for revenue of $8.26 billion, up 1.01% from the prior-year quarter.
SLB's full-year Zacks Consensus Estimates are calling for earnings of $1.46 per share and revenue of $32.94 billion. These results would represent year-over-year changes of -9.88% and +0.39%, respectively.
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 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. Within the past 30 days, our consensus EPS projection has moved 0.1% lower. SLB is currently a Zacks Rank #3 (Hold).
Looking at its valuation, SLB is holding a Forward P/E ratio of 24.74. This represents a premium compared to its industry's average Forward P/E of 21.35.
Investors should also note that SLB has a PEG ratio of 3.65 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Field Services was holding an average PEG ratio of 2.66 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 243, which puts it in the bottom 5% 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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