Schlumberger (SLB) closed the most recent trading day at $35.24, moving +1.35% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.13% for the day. Elsewhere, the Dow lost 0.27%, while the tech-heavy Nasdaq lost 0.07%.
The world's largest oilfield services company's stock has climbed by 4.41% in the past month, exceeding the Oils-Energy sector's gain of 2.71% and the S&P 500's gain of 2.71%.
Analysts and investors alike will be keeping a close eye on the performance of Schlumberger in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.68, marking a 23.6% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.99 billion, down 1.89% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.89 per share and revenue of $35.51 billion, which would represent changes of -15.25% and -2.14%, respectively, from the prior 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 a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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, there's been a 0.11% rise in the Zacks Consensus EPS estimate. As of now, Schlumberger holds a Zacks Rank of #3 (Hold).
Digging into valuation, Schlumberger currently has a Forward P/E ratio of 12.05. This indicates a discount in contrast to its industry's Forward P/E of 17.54.
One should further note that SLB currently holds a PEG ratio of 9.64. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Oil and Gas - Field Services industry stood at 2.11 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 174, this industry ranks in the bottom 30% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Schlumberger Limited (SLB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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