Schlumberger (SLB) ended the recent trading session at $43.75, demonstrating a -1.09% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.99%, while the tech-heavy Nasdaq added 0.27%.
The world's largest oilfield services company's shares have seen an increase of 5.97% over the last month, not keeping up with the Oils-Energy sector's gain of 6.06% and outstripping the S&P 500's gain of 2.1%.
The investment community will be paying close attention to the earnings performance of Schlumberger in its upcoming release. The company is predicted to post an EPS of $0.91, indicating a 5.81% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $9.21 billion, indicating a 2.4% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.39 per share and revenue of $36.21 billion, which would represent changes of +13.76% and +9.27%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Schlumberger. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 shifted 0.13% downward. Schlumberger presently features a Zacks Rank of #4 (Sell).
Looking at valuation, Schlumberger is presently trading at a Forward P/E ratio of 13.03. This indicates a discount in contrast to its industry's Forward P/E of 21.53.
It's also important to note that SLB currently trades at a PEG ratio of 1.56. 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 industry had an average PEG ratio of 1.27 as trading concluded yesterday.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 81, placing it within the top 33% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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