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Schlumberger (SLB) Ascends But Remains Behind Market: Some Facts to Note

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The latest trading session saw Schlumberger (SLB - Free Report) ending at $59.45, denoting a +0.83% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 1.06%. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 1.2%.

Shares of the world's largest oilfield services company witnessed a loss of 2.67% over the previous month, trailing the performance of the Oils-Energy sector with its loss of 0.77% and outperforming the S&P 500's loss of 3%.

Investors will be eagerly watching for the performance of Schlumberger in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 20, 2023. On that day, Schlumberger is projected to report earnings of $0.77 per share, which would represent year-over-year growth of 22.22%. Simultaneously, our latest consensus estimate expects the revenue to be $8.33 billion, showing a 11.39% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $2.98 per share and a revenue of $32.92 billion, demonstrating changes of +36.7% and +17.19%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Schlumberger. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.33% decrease. Schlumberger presently features a Zacks Rank of #3 (Hold).

Looking at valuation, Schlumberger is presently trading at a Forward P/E ratio of 19.8. This expresses no noticeable deviation compared to the average Forward P/E of 19.8 of its industry.

It's also important to note that SLB currently trades at a PEG ratio of 0.75. 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. By the end of yesterday's trading, the Oil and Gas - Field Services industry had an average PEG ratio of 0.75.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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