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Schlumberger (SLB) Dips More Than Broader Markets: What You Should Know

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Schlumberger (SLB) closed the most recent trading day at $35.76, moving -1.16% from the previous trading session. This move lagged the S&P 500's daily loss of 0.88%. At the same time, the Dow lost 0.82%, and the tech-heavy Nasdaq gained 0.08%.

Prior to today's trading, shares of the world's largest oilfield services company had lost 22.49% over the past month. This has lagged the Oils-Energy sector's loss of 14.09% and the S&P 500's loss of 8.06% in that time.

Schlumberger will be looking to display strength as it nears its next earnings release, which is expected to be July 22, 2022. 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.

Any recent changes to analyst estimates for Schlumberger 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Schlumberger currently has a Zacks Rank of #3 (Hold).

Investors should also note Schlumberger's current valuation metrics, including its Forward P/E ratio of 19.61. This represents a discount compared to its industry's average Forward P/E of 21.32.

Meanwhile, SLB's PEG ratio is currently 0.42. 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. SLB's industry had an average PEG ratio of 0.42 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 64, which puts it in the top 26% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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