Schlumberger Limited (SLB), headquartered in Houston, Texas, is a global oilfield services company specializing in technology, innovation, and solutions for the energy sector, with a market cap of $56.59 billion. Competing with other major players like Halliburton (HAL), Schlumberger continues to drive advancements in energy exploration, production, and digital transformation, delivering cutting-edge technologies that enhance operational efficiency and sustainability for clients worldwide.
Companies valued at $10 billion or more are generally classified as "large-cap stocks," and Schlumberger fits well into this category. SLB has built a robust market position through its innovative technologies and comprehensive solutions for the exploration, production, and digital transformation of the energy sector, helping clients optimize performance and drive sustainable energy practices worldwide.
SLB shares are trading 36.3% below their 52-week high of $62.12, which they hit on Sep. 12, 2023. Also, the stock has declined 12% over the past three months, significantly underperforming the Dow Jones Industrial Average Index’s ($DOWI) 4.8% returns over the same time frame.
In the longer term, SLB is down 23.9% on a YTD basis, and the shares have declined 34.2% over the past 52 weeks. In comparison, the Dow has gained 8.1% in 2024 and 17.8% over the past year.
To confirm the bearish trend, SLB has been trading below its 50-day moving average since late July and its 200-day moving average since mid-September 2023.
SLB gained roughly 2% on Jul. 19 following its better-than-expected Q2 earnings release, driven by strong global demand and significant revenue growth from international markets, despite warnings of softer activity in North America for the year's second half. Schlumberger is partnering with Palo Alto Networks (PANW) to enhance cybersecurity solutions for the energy sector by leveraging their combined expertise.
Highlighting the contrast in performance, rival HAL has underperformed SLB and the border index, with a 31.4% decline over the 52 weeks.
Despite SLB's recent underperformance compared to the Dow, analysts are optimistic about its prospects. The stock has a consensus rating of "Strong Buy" from 20 analysts in coverage. The mean price target is $65.32, which suggests a premium of 65% to its current levels.
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