Schlumberger (SLB) ended the recent trading session at $41.43, demonstrating a +0.8% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.64%. At the same time, the Dow added 0.85%, and the tech-heavy Nasdaq gained 0.31%.
The the stock of world's largest oilfield services company has fallen by 1.56% in the past month, leading the Oils-Energy sector's loss of 3.15% and the S&P 500's loss of 7.69%.
The upcoming earnings release of Schlumberger will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.74, reflecting a 1.33% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.63 billion, indicating a 0.84% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.38 per share and a revenue of $38.63 billion, representing changes of -0.88% and +6.45%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Schlumberger. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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 past month, the Zacks Consensus EPS estimate has remained steady. Schlumberger is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Schlumberger is currently trading at a Forward P/E ratio of 12.16. Its industry sports an average Forward P/E of 12.74, so one might conclude that Schlumberger is trading at a discount comparatively.
Also, we should mention that SLB has a PEG ratio of 9.73. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Oil and Gas - Field Services industry stood at 1.54 at the close of the market yesterday.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 73, this industry ranks in the top 30% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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