Stock of the Day

January 6, 2025

Schlumberger (SLB)

$41.73
-$0.87 (-2.1%)
Market Cap: $59.68B

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 has shown strong institutional support, with 81.99% of its stock owned by institutional investors and hedge funds, indicating confidence in the company's future performance.
  • The company recently traded at $41.75, which is positioned between its 52-week low of $36.52 and high of $55.69, suggesting potential for price appreciation as it approaches its higher valuation.
  • Recent analyst ratings reflect a generally positive outlook, with 16 analysts giving a buy rating and an average target price of $55.81, indicating potential upside for investors.
  • Vontobel Holding Ltd. increased its stake in Schlumberger Limited by 22.7%, acquiring an additional 87,098 shares, which demonstrates growing confidence from significant investors.
  • Schlumberger Limited operates in the energy sector, which is expected to see growth due to increasing global energy demands, positioning the company well for future profitability.

Schlumberger Bear Case

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

  • Insider selling has been notable, with a total of 263,782 shares sold in the last three months, which may indicate a lack of confidence from those within the company.
  • Recent downgrades from analysts, including a cut from "strong-buy" to "hold," suggest that some experts are cautious about the stock's near-term performance.
  • The stock's trading volume has been lower than its average, which could indicate reduced investor interest and potential volatility in price movements.
  • With the energy sector facing uncertainties, including fluctuating oil prices and regulatory changes, there may be risks that could impact Schlumberger Limited's profitability.
  • Despite the positive outlook from some analysts, the mixed ratings and target price adjustments indicate that there is uncertainty in the market regarding the company's future performance.

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