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In the latest market close, Schlumberger (SLB) reached $39.37, with a +1.57% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 1.11%. Meanwhile, the Dow experienced a drop of 0.42%, and the technology-dominated Nasdaq saw a decrease of 1.89%.
The world's largest oilfield services company's stock has dropped by 5.85% in the past month, exceeding the Oils-Energy sector's loss of 11.62% and lagging the S&P 500's loss of 1.7%.
The upcoming earnings release of Schlumberger will be of great interest to investors. The company's earnings report is expected on January 17, 2025. The company's upcoming EPS is projected at $0.91, signifying a 5.81% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $9.18 billion, indicating a 2.11% upward movement from the same quarter last year.
Investors should also take note of any recent adjustments 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 company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 witnessed a 4.99% decrease. Schlumberger presently features a Zacks Rank of #5 (Strong Sell).
With respect to valuation, Schlumberger is currently being traded at a Forward P/E ratio of 11.19. This indicates a discount in contrast to its industry's Forward P/E of 15.42.
It is also worth noting that SLB currently has a PEG ratio of 1.34. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Field Services was holding an average PEG ratio of 1.16 at yesterday's closing price.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 21% of all 250+ industries.