all Street analysts maintain a bullish outlook on the stock’s prospects.
With a market cap of $56.3 billion, Houston, Texas-based Schlumberger Limited (SLB) is a global leader in oilfield services, providing technology and expertise to the energy industry. The company supports oil and gas explorers and producers with services ranging from reservoir evaluation and drilling to well construction and production optimization.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Schlumberger fits this criterion perfectly. Operating through four key segments - Digital & Integration, Reservoir Performance; Well Construction; and Production Systems, Schlumberger delivers comprehensive solutions across the upstream energy sector.
However, the oilfield Giant has dipped 24.4% from its 52-week high of $55.69, reached in March 2024. Over the past three months, shares of SLB have risen 3%, which outpaced the SPDR S&P Oil & Gas Equipment & Services ETF's (XES) decline of 15.2% during the same period.
In the longer term, Schlumberger has gained 9.8% on a YTD basis, outperforming XES’ 12.4% dip. Moreover, shares of SLB have dipped 16.5% over the past 52 weeks, compared to XES’ 19.2% decrease over the same time frame.
But, despite few fluctuations, SLB stock has been trading below its 50-day and 200-day moving averages since last year.
Shares of Schlumberger climbed over 6% on Jan. 17 due to its strong Q4 2024 earnings report. The company posted adjusted EPS of $0.92 and revenue of $9.3 billion, both surpassing the estimates. Investors reacted positively to SLB’s 6% sequential and 10% year-over-year growth in its Digital & Integration segment, driven by AI-driven solutions like the Lumi platform. Additionally, the company’s decision to raise its quarterly dividend by 3.6% and increase its share buyback authorization to at least $4 billion signaled strong cash flow confidence, further boosting investor sentiment.
In comparison with its rival, Baker Hughes Company (BKR) has lagged behind SLB, with a rise of 2.7% on a YTD basis. Nevertheless, Baker Hughes has climbed 37.6% over the past 52 weeks, outperforming Schlumberger.
Despite the stock’s underperformance over the past year, analysts are bullish about its prospects. SLB has a consensus rating of “Strong Buy” from the 25 analysts covering the stock, and it is currently trading below the mean price target of $53.65.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
