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The latest trading session saw Schlumberger (SLB) ending at $41.53, denoting a -0.5% adjustment from its last day's close. The stock performed in line with S&P 500. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 1.21%.
Heading into today, shares of the world's largest oilfield services company had lost 1.21% over the past month, outpacing the Oils-Energy sector's loss of 5.13% and lagging the S&P 500's loss of 0.47% in that time.
Market participants will be closely following the financial results of Schlumberger in its upcoming release. The company is expected to report EPS of $0.74, down 1.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.63 billion, down 0.84% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.38 per share and a revenue of $38.63 billion, representing changes of -0.88% and +6.45%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Schlumberger. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.85% decrease. Schlumberger is currently a Zacks Rank #4 (Sell).
From a valuation perspective, Schlumberger is currently exchanging hands at a Forward P/E ratio of 12.35. This denotes a discount relative to the industry's average Forward P/E of 13.89.
Investors should also note that SLB has a PEG ratio of 9.88 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Oil and Gas - Field Services industry had an average PEG ratio of 1.57.
The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 23% of all 250+ industries.