Yahoo Finance Schlumberger (SLB) Exceeds Market Returns: Some Facts to Consider
Schlumberger (SLB) ended the recent trading session at $43.63, demonstrating a +1.47% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.77%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 0.95%.
Shares of the world's largest oilfield services company witnessed a loss of 11.5% over the previous month, trailing the performance of the Oils-Energy sector with its loss of 7.24% and the S&P 500's gain of 3.71%.
Investors will be eagerly watching for the performance of Schlumberger in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.83, marking a 15.28% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $9.07 billion, reflecting a 12.03% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.51 per share and revenue of $37.18 billion. These totals would mark changes of +17.79% and +12.21%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Schlumberger. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Schlumberger is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Schlumberger is currently exchanging hands at a Forward P/E ratio of 12.25. Its industry sports an average Forward P/E of 16.35, so one might conclude that Schlumberger is trading at a discount comparatively.
Investors should also note that SLB has a PEG ratio of 0.83 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Oil and Gas - Field Services was holding an average PEG ratio of 0.87 at yesterday's closing price.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 149, positioning it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Schlumberger Limited (SLB) : Free Stock Analysis Report
