On May 26, 2017, Schlumberger’s (SLB) implied volatility was 18.5%. Since its 1Q17 financial results were announced on April 21, Schlumberger’s implied volatility has fallen from 21.4% to the current level. Schlumberger accounts for 3.3% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). To learn more about Schlumberger’s 1Q17 earnings, read Schlumberger’s 1Q17 Earnings Met Estimates.
Schlumberger’s seven-day stock price forecast
Based on Schlumberger’s implied volatility and assuming a normal distribution of stock prices and one standard deviation probability of 68.2%, Schlumberger stock will likely close between $71.88 and $68.30 in the next seven days. Sclumberger’s stock price was $70.09 on May 26, 2017.
Implied volatility for Schlumberger’s peers
On May 26, National Oilwell Varco’s (NOV) implied volatility was ~27%, while Precision Drilling’s (PDS) implied volatility was ~51%. On the same day, McDermott International’s (MDR) implied volatility was ~42%.
Schlumberger accounts for 0.47% of the SPDR S&P 500 ETF (SPY). SPY tracks the price and yield performance of the S&P 500 Index (SPX-INDEX). The S&P 500 Index includes 500 top companies. The energy sector makes up 6.3% of SPX-INDEX. The SPX-INDEX rose 15% in the past year—compared to a 9% fall in Schlumberger’s stock price.
In the next part, we’ll discuss investors’ short interest in Schlumberger.