Stock of the Day
January 6, 2025

Schlumberger (SLB)

$38.70
-$0.67 (-1.7%)
Market Cap: $54.65B

About Schlumberger

Schlumberger Limited engages in the provision of technology for the energy industry worldwide. The company operates through four divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. The company provides field development and hydrocarbon production, carbon management, and integration of adjacent energy systems; reservoir interpretation and data processing services for exploration data; and well construction and production improvement services and products. It also offers subsurface geology and fluids evaluation information; open and cased hole services; exploration and production pressure, and flow-rate measurement services; and pressure pumping, well stimulation, and coiled tubing equipment solutions. In addition, the company offers mud logging, directional drilling, measurement-while-drilling, and logging-while-drilling services, as well as engineering support services; supplies drilling fluid systems; designs, manufactures, and markets roller cone and fixed cutter drill bits; bottom-hole-assembly and borehole enlargement technologies; well cementing products and services; well planning, well drilling, engineering, supervision, logistics, procurement, and contracting of third parties, as well as drilling rig management solutions; and drilling equipment and services, as well as land drilling rigs and related services. Further, it provides artificial lift production equipment and optimization services; supplies packers, safety valves, sand control technology, and various intelligent well completions technology and equipment; designs and manufactures valves, chokes, actuators, and surface trees; and OneSubsea, an integrated solutions, products, systems, and services, including wellheads, subsea trees, manifolds and flowline connectors, control systems, connectors, and services. The company was formerly known as Socie´te´ de Prospection E´lectrique. Schlumberger Limited was founded in 1926 and is based in Houston, Texas.

Schlumberger Bull Case

Here are some ways that investors could benefit from investing in Schlumberger Limited:

  • Schlumberger Limited reported a strong earnings per share (EPS) of $0.89 for the latest quarter, surpassing analysts' expectations, which indicates robust financial performance and effective management.
  • The company has a solid market capitalization of approximately $56.80 billion, reflecting its significant presence and stability in the energy sector.
  • With a current stock price around $41.69, investors may find it attractive given the potential for growth, especially considering the company's 52-week high of $55.69.
  • Schlumberger Limited has a dividend yield of approximately 2.73%, providing investors with a steady income stream, which is appealing in a volatile market.
  • The company has shown a year-over-year revenue increase of 10.2%, indicating strong demand for its services and potential for future growth.

Schlumberger Bear Case

Investors should be bearish about investing in Schlumberger Limited for these reasons:

  • Despite the positive earnings report, Schlumberger Limited's revenue of $9.16 billion fell short of analysts' expectations of $9.27 billion, which may raise concerns about future performance.
  • The company has a relatively high beta of 1.51, indicating that its stock price is more volatile than the market, which could pose risks for conservative investors.
  • Analysts have recently adjusted their price targets downward, with some reducing their expectations for the stock's future performance, which may signal caution.
  • Schlumberger Limited's debt-to-equity ratio of 0.52, while manageable, suggests that the company is using some leverage, which could be a concern in a rising interest rate environment.
  • There is a mixed sentiment among analysts, with a significant number rating the stock as a hold, indicating uncertainty about its short-term prospects.

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