Here’s Schlumberger’s Stock Price Forecast for Next 7 Days
Schlumberger’s implied volatility
On March 24, 2017, Schlumberger’s (SLB) implied volatility was 19.5%. Since 4Q16 financial results were announced on January 20, Schlumberger’s implied volatility has risen from 17% to the current level. SLB makes up 3.2% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). Read about how Schlumberger performed in 4Q16 in Market Realist’s Why Did Schlumberger’s 4Q16 Earnings Beat Estimates?
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Implied volatility and Schlumberger’s stock price forecast
Based on Schlumberger’s implied volatility and assuming normal distribution of stock prices and one standard deviation probability of 68.2%, SLB’s stock will likely close between $79.04 and $74.88 in the next seven days. SLB’s stock price was $76.96 on March 24, 2017.
Implied volatility for SLB’s peers
Helmerich & Payne’s (HP) implied volatility on March 24 was ~30%, while Helix Energy Solutions’ (HLX) implied volatility was ~59% on that day. TechnipFMC’s (FTI) implied volatility on March 24 was ~31%.
What does implied volatility mean?
Implied volatility (or IV) reflects investors’ views of a stock’s potential movement. However, IV doesn’t forecast direction. IV is derived from an option pricing model. Investors should note that the accuracy of IV-based price predictions is uncertain.
Learn more about the OFS industry in Market Realist’s The Oilfield Equipment and Services Industry: A Primer.