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Forecasting Schlumberger’s Stock Price over the Next 7 Days

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Schlumberger’s implied volatility

Since Schlumberger (SLB) released in 4Q17 financial results on January 19, 2018, its implied volatility has risen to 21% to 31.7%.[1.as of March 23, 2018] Since January 19, SLB’s stock price has fallen ~16%. SLB comprises 3.0% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES), which provides exposure to the oil and gas equipment and services segment of the energy sector. XES has fallen ~19% since January 19, 2018.

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Schlumberger’s seven-day stock price forecast

Schlumberger’s stock will likely close between $61.32 and $66.96 in the next seven days, based on its implied volatility. Schlumberger’s seven-day stock price forecast considers a normal distribution of stock prices, a standard deviation of one, and a probability of 68.2%. SLB’s stock price was $64.14 on March 23, 2018.

Implied volatility for SLB’s peers 

Peers’ implied volatility on March 23 and seven-day stock price forecasts are as follows:

  • National Oilwell Varco (NOV): implied volatility of 33.9% and price forecast of $35.44–$38.92
  • Helmerich & Payne (HP): implied volatility of 33.2% and price forecast of $63.40–$69.52
  • McDermott International (MDR) implied volatility of 45.6% and price forecast of $6.27–$7.11

Crude oil’s implied volatility

On March 23, crude oil’s implied volatility was 24.7%. Since January 19, 2018, both crude oil’s and SLB’s implied volatility values have risen. For more about Schlumberger, read Market Realist’s Schlumberger’s Outlook and Fundamentals in 2018. Next, we’ll discuss SLB’s correlation with crude oil.

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