Schlumberger (SLB) ended the recent trading session at $36.30, demonstrating a +1.88% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 1.13% for the day. Meanwhile, the Dow lost 1.79%, and the Nasdaq, a tech-heavy index, lost 1.3%.
The world's largest oilfield services company's stock has dropped by 0.25% in the past month, falling short of the Oils-Energy sector's gain of 5.03% and the S&P 500's gain of 3.55%.
The investment community will be paying close attention to the earnings performance of Schlumberger in its upcoming release. It is anticipated that the company will report an EPS of $0.77, marking a 9.41% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $8.49 billion, down 7.08% from the year-ago period.
SLB's full-year Zacks Consensus Estimates are calling for earnings of $3.15 per share and revenue of $35.98 billion. These results would represent year-over-year changes of -7.62% and -0.84%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Schlumberger. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 2.41% fall in the Zacks Consensus EPS estimate. Currently, Schlumberger is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Schlumberger currently has a Forward P/E ratio of 11.31. This expresses a discount compared to the average Forward P/E of 15.35 of its industry.
One should further note that SLB currently holds a PEG ratio of 9.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Field Services stocks are, on average, holding a PEG ratio of 3.55 based on yesterday's closing prices.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 137, positioning it in the bottom 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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