SLB (SLB) closed the most recent trading day at $48.11, moving +1.95% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.21%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, added 0.01%.
Shares of the world's largest oilfield services company have depreciated by 6.63% over the course of the past month, underperforming the Business Services sector's loss of 1.13%, and the S&P 500's loss of 2.26%.
Market participants will be closely following the financial results of SLB in its upcoming release. In that report, analysts expect SLB to post earnings of $0.62 per share. This would mark a year-over-year decline of 13.89%. Meanwhile, our latest consensus estimate is calling for revenue of $8.88 billion, up 4.57% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.92 per share and revenue of $37.27 billion, indicating changes of -0.34% and +4.36%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for SLB. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. SLB presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that SLB has a Forward P/E ratio of 16.14 right now. This expresses a premium compared to the average Forward P/E of 15.97 of its industry.
It's also important to note that SLB currently trades at a PEG ratio of 3.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Technology Services industry currently had an average PEG ratio of 1.42 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 184, which puts it in the bottom 25% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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SLB Limited (SLB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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