Schlumberger’s stock price compared to industry
Schlumberger’s (SLB) one-year stock price was down 17% as of August 4, 2017. In the past one year, the Energy Select Sector SPDR ETF (XLE) has fallen 3%. XLE represents the broader energy industry ETF. The VanEck Vectors Oil Services ETF (OIH) has fallen -14% in the past one year. So, SLB has underperformed both XLE and OIH in the past year. OIH is an ETF tracking an index of 25 oilfield equipment and services (or OFS) companies. The Dow Jones Industrial Average (DJIA-INDEX) has risen 19% in the past one year. In the past one year, the SPDR S&P 500 ETF (SPY) has outperformed Schlumberger. SPY has produced 13% returns during this period.
Crude oil price and rigs
In the past one year, the West Texas Intermediate (or WTI) crude oil price has risen 19%. Taking cues from crude oil’s strength, the US rig count increased 106% in the past one year. Learn more on crude oil production and price in Market Realist’s Gasoline Demand and Crude Oil Inventories Drive Oil Futures. Also, read about the valuations of prominent OFS companies like Weatherford International (WFT) and Halliburton (HAL) in Market Realist’s Why OFS Stocks Are Seeing Bearish Trends.
Recent events that could affect Schlumberger’s returns
- Schlumberger released its 2Q17 earnings results on July 21, 2017. Read more on this in Market Realist’s Why Schlumberger’s 2Q17 Earnings Beat Estimates.
- During 1Q17, SLB repurchased $398 million worth of common stock for an average price of $72.34. On August 4, SLB was trading at $67.54.
- On July 20, 2017, SLB made an agreement with onshore and offshore drilling and well services company Eurasia Drilling Company Limited (or EDC) to acquire EDC’s 51% stake.
- In May 2017, SLB signed a memorandum of understanding with Saudi Arabia’s Saudi Aramco.
- Schlumberger and Weatherford International (WFT) proposed a joint venture (or JV) named “OneStimSM” in March 2017.
In this series, we will look at investors’ short interest in Schlumberger and SLB’s implied volatility. We will look at Schlumberger’s stock price forecast next.