Stock of the Day

January 6, 2025

Schlumberger (SLB)

$33.70
+$0.62 (+1.9%)
Market Cap: $45.84B

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 seen significant institutional investment, with hedge funds and other institutional investors owning approximately 81.99% of the company's stock, indicating strong confidence in its future performance.
  • The current stock price is around $33.02, which is relatively low compared to its one-year high of $50.94, suggesting potential for price appreciation as the market recovers.
  • Analysts have a consensus rating of "Moderate Buy" for Schlumberger Limited, with a target price of $52.44, indicating that many experts believe the stock is undervalued at its current price.
  • Recent upgrades from major financial institutions, such as Wells Fargo & Company raising their rating to "overweight," reflect positive sentiment and potential growth in the company's stock value.
  • Schlumberger Limited's diverse portfolio in the oil and gas sector positions it well to benefit from any increases in energy demand, especially as global economies recover.

Schlumberger Bear Case

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

  • Despite recent upgrades, some analysts have lowered their price targets, indicating uncertainty about the company's short-term performance and potential volatility in its stock price.
  • The stock has recently traded down about 2.0%, which may signal a bearish trend and could deter potential investors looking for stability.
  • Schlumberger Limited operates in a highly competitive and cyclical industry, which can lead to fluctuations in revenue and profitability based on global oil prices.
  • With a debt-to-equity ratio of 0.49, while manageable, it indicates that the company does carry some debt, which could be a concern if market conditions worsen.
  • Recent market conditions have shown increased volatility, which may pose risks for investors looking for consistent returns in the oil and gas sector.
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