What’s Schlumberger’s 7-Day Stock Price Forecast on July 14?
On July 14, 2017, Schlumberger’s (SLB) implied volatility was 21.2%. Since it announced its 1Q17 financial results on April 21, 2017, its implied volatility has remained nearly unchanged. SLB makes up 3.2% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XES has fallen 16.0% in the past year compared to a 16.0% fall in SLB stock. Implied volatility reflects a stock’s potential price movement as viewed by investors.
Schlumberger’s 7-day stock price forecast
SLB stock will likely close between $68.81 and $64.89 in the next seven days, based on Schlumberger’s implied volatility. We also assume a normal distribution of stock prices and one standard deviation probability of 68.2%. SLB stock was at $66.85 on July 14, 2017. You can read more on Schlumberger’s 1Q17 earnings in Market Realist’s Schlumberger Set to Post 2Q17 Results: What to Expect.
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Implied volatility for SLB’s peers
National Oilwell Varco’s (NOV) implied volatility on July 14, 2017, was ~32.0%, while Oil States International’s (OIS) implied volatility was ~41.0%. McDermott International’s (MDR) implied volatility was also ~41.0% that day.
Crude oil’s implied volatility
On July 27, 2017, crude oil’s implied volatility was ~27.0%. Since early May 2017, SLB’s implied volatility has risen from ~19.0% to ~21.0%, even though crude oil’s volatility during the same period declined. The S&P 500 index (SPX-INDEX) has risen 14.0% in the past year compared to a 16.0% fall in SLB stock. The energy sector makes up 6.0% of the SPX-INDEX. SLB makes up 0.44% of the SPDR S&P 500 ETF (SPY).
Next, let’s take a look at investors’ short interest in Schlumberger.