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Schlumberger’s Next-7-Day Stock Price Forecast

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Schlumberger’s implied volatility

On March 2, 2018, Schlumberger’s (SLB) implied volatility was 27.1%. On January 19, 2018, Schlumberger’s 4Q17 financial results were released. Since then, Schlumberger’s implied volatility has increased from 21.0% to 27.1%. 

Since January 19, 2018, SLB’s stock price has decreased nearly 14.0%. SLB comprises 3.6% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES). XES has decreased ~20.0% since January 19, 2018.

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Schlumberger’s seven-day stock price forecast

Schlumberger stock could close between $63.01 and $67.93 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 a one standard deviation probability of 68.2%. SLB’s stock price was $65.47 on March 2, 2018.

Implied volatility for SLB’s peers

National Oilwell Varco’s (NOV) implied volatility on March 2 was 31.8%. This indicates that NOV’s stock price can vary between $34.49 and $37.67 in the next seven days. Helmerich & Payne’s (HP) implied volatility was 30.6% on March 2. This implies that HP’s stock price can range between $63.96 and $69.62 in the next seven days. 

Tidewater’s (TDW) implied volatility was 45.6% on March 2. This implies that TDW’s stock price can vary between $23.47 and $26.63 in the next seven days. You can read more about Schlumberger in Market Realist’s Schlumberger: What to Expect after Strong 4Q17 Earnings.

Crude oil’s implied volatility

On March 2, 2018, crude oil’s implied volatility was 22.9%. Since January 19, 2018, crude oil’s volatility increased, while SLB’s implied volatility also increased during the same period.

In the final part of this series, we’ll discuss SLB’s correlation coefficient with crude oil.

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