Schlumberger (SLB) Outperforms Broader Market: What You Need to Know

The most recent trading session ended with Schlumberger (SLB) standing at $33.34, reflecting a +0.88% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.41% for the day. On the other hand, the Dow registered a gain of 0.08%, and the technology-centric Nasdaq increased by 0.67%.Shares of the world's largest oilfield services company have depreciated by 4.84% over the course of the past month, underperforming the Oils-Energy sector's gain of 4.15% and the S&P 500's gain of 6.13%.The upcoming earnings release of Schlumberger will be of great interest to investors. The company is predicted to post an EPS of $0.77, indicating a 9.41% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $8.49 billion, showing a 7.08% drop compared to the year-ago quarter.SLB's full-year Zacks Consensus Estimates are calling for earnings of $3.18 per share and revenue of $35.98 billion. These results would represent year-over-year changes of -6.74% and -0.84%, respectively.Investors should also note any recent changes to analyst estimates for Schlumberger. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Our research suggests that these changes in estimates have a direct relationship with upcoming 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 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. The Zacks Consensus EPS estimate has moved 2.27% lower within the past month. At present, Schlumberger boasts a Zacks Rank of #4 (Sell).Valuation is also important, so investors should note that Schlumberger has a Forward P/E ratio of 10.4 right now. Its industry sports an average Forward P/E of 14.53, so one might conclude that Schlumberger is trading at a discount comparatively.Also, we should mention that SLB has a PEG ratio of 8.32. 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 2.39.The Oil and Gas - Field Services industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 189, positioning it in the bottom 24% of all 250+ industries.The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.Don’t Miss Out on These Stocks Before you make your next investing move, we have a free report that highlights the %%CTA_TEXT%% to buy.Our experts at Zacks Investment Research hand-selected these stocks for their eye-opening growth projections.Since 1988, our stock picks have more than doubled the S&P 500 with an average gain of +23.89% per year using the Zacks Rank stock-rating system.Register now to see the %%CTA_TEXT%%.7 best stocksWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Schlumberger Limited (SLB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks