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Schlumberger’s Next 7-Day Stock Price Forecast

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Schlumberger’s implied volatility

On January 12, 2018, Schlumberger’s (SLB) implied volatility was ~24.5%. On January 12, 2018, Schlumberger’s 4Q17 financial results were released. On October 20, 2017, Schlumberger’s 3Q17 financial results were released. Since October 20, 2017, Schlumberger’s implied volatility has increased from 20% to this level. Since October 20, Schlumberger’s stock price has increased nearly 21%. Schlumberger accounts for 3.4% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XES has increased 24% since October 20, 2017.

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Schlumberger’s seven-day stock price forecast

Schlumberger stock will likely close between $78.64 and $74.20 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 $76.42 on January 19, 2018.

Implied volatility for Schlumberger’s peers         

National Oilwell Varco’s (NOV) implied volatility on January 19 was ~29%, which implies that its stock price could vary between $39.50 and $36.46 in the next seven days. Helmerich & Payne’s (HP) implied volatility was ~32% on January 19. It implies that Helmerich & Payne’s stock price could range between $74.31 and $67.95 in the next seven days. Tidewater’s (TDW) implied volatility was ~43% on January 19. It implies that Tidewater’s stock price could vary between $29.64 and $26.34 in the next seven days. To learn more, read Oilfield Services after 3Q17: SLB, HAL, BHGE, and NOV.

Crude oil’s implied volatility

On January 19, crude oil’s implied volatility was 18.6%. Since October 20, 2017, crude oil’s volatility has decreased, while Schlumberger’s implied volatility has increased during the same period. The S&P 500 Index (SPX-INDEX) has increased 9% since October 20, 2017.

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

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