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Schlumberger’s Stock Price Forecast for the Next 7 Days

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Schlumberger’s implied volatility

On December 22, 2017, Schlumberger’s (SLB) implied volatility was ~23%. On October 20, Schlumberger’s 3Q17 financial results were released. Since then, Schlumberger’s implied volatility has risen from 20% to this level. Since October 20, Schlumberger’s stock price has risen nearly 7%. Schlumberger accounts for 3.4% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XES has risen 13% since October 20, 2017.

Schlumberger’s seven-day stock price forecast

Schlumberger stock will likely close between $69.49 and $65.39 in the next seven days—based on its implied volatility. Schlumberger’s seven-day stock price forecast considers a normal distribution of stock prices and one standard deviation probability of 68.2%. Schlumberger’s stock price was $67.44 on December 22, 2017.

Implied volatility for Schlumberger’s peers         

On December 22, National Oilwell Varco’s (NOV) implied volatility was ~23%, which implies that its stock price could vary between $36.56 and $34.32 in the next seven days. Helmerich & Payne’s (HP) implied volatility was ~28% on December 22. It implies that Helmerich & Payne’s stock price could range between $66.83 and $61.81 in the next seven days. Tidewater’s (TDW) implied volatility was ~37% on December 22. It implies that Tidewater’s stock price could vary between $25.93 and $23.39 in the next seven days. To learn about oilfield services companies, read Oilfield Services after 3Q17: SLB, HAL, BHGE, and NOV.

Crude oil’s implied volatility

On December 22, crude oil’s implied volatility was 15.5%. Since October 20, crude oil’s volatility has fallen, while Schlumberger’s implied volatility has risen during the same period. The S&P 500 Index (SPX-INDEX) has risen 4% since October 20, 2017.

Next, we’ll discuss Schlumberger’s correlation coefficient with crude oil.

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