Houston, Texas-based Schlumberger Limited (SLB) is a global leader in oilfield services and energy technology. Currently valued at a market cap of $46.4 billion, the company has evolved from its origins in geophysical surveying to become a comprehensive provider of services across the energy sector.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Schlumberger fits this criterion perfectly. It holds strong competitive advantages as a global leader in oilfield services and energy technology. Its vast international presence across 100+ countries and diverse service portfolio, including reservoir evaluation, drilling, and production systems, gives it scale and flexibility.
However, it’s not all sunshine and rainbows for SLB as it has dipped 24.4% from its 52-week high of $50.94, reached on Jul. 19, 2024. Over the past three months, shares of SLB have declined 14.9%, compared to the S&P 500 Index’s ($SPX) 3.3% increase.
In the longer term, Schlumberger is down 13.3% on a YTD basis, lagging behind $SPX’s 1.5% rise. Moreover, shares of SLB have dipped 23.4% over the past 52 weeks, compared to $SPX’s 12.8% rise over the same time frame.
Indicating a long-term bearish trend, SLB has been mostly trading below its 50-day and 200-day moving averages since last year, despite some fluctuations.
Schlumberger shares declined over 2% on Jun. 4, following reports that Saudi Arabia is advocating for OPEC+ to accelerate oil production increases in the coming months. This push aims to reclaim lost market share but has raised concerns about potential oversupply and downward pressure on oil prices.
In the competitive energy sector, top rival Baker Hughes Company (BKR) has outpaced SLB, with a 17.9% rally over the past year and a 9.1% dip on a YTD basis.
However, analysts are highly bullish about its prospects. SLB has a consensus rating of “Strong Buy” from the 25 analysts covering the stock, and its mean price target of $48.65 represents a robust premium of 46.4% from the prevailing price levels.
