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Analyzing Schlumberger’s Stock Price Forecast This Week

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Aug. 18 2020, Updated 10:39 a.m. ET

Schlumberger’s implied volatility

Schlumberger’s (SLB) first-quarter financial results were released on April 20. From April 20 to June 29, Schlumberger’s implied volatility has remained nearly unchanged at ~24.0%. The company’s stock price decreased 3.2% during this period.

Schlumberger accounts for 2.9% of the SPDR S&P Oil & Gas Equipment & Services ETF (XES), which provides exposure to the energy sector’s oil and gas equipment and service segment. XES increased 1.3% from April 20 to June 29.

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Schlumberger’s stock price forecast this week

Schlumberger stock is expected to close between $64.78 and $69.28 by July 6 based on its implied volatility. The forecast considers a normal distribution of stock prices and a 1.0 standard deviation probability of 68.2%. Schlumberger’s stock price closed at $67.03 on June 29.

Implied volatility for Schlumberger’s peers

  • National Oilwell Varco’s (NOV) implied volatility on June 29 was 31.0%, which implies a stock price range of $41.54–$45.26 by July 6.
  • Helmerich & Payne’s (HP) implied volatility on June 29 was 32.2%, which implies a stock price of $60.91–$66.61 by July 6.
  • McDermott International’s (MDR) implied volatility on June 29 was 38.5%, which implies a stock price of $18.60–$20.70 by July 6.

Crude oil’s implied volatility

On June 29, crude oil’s implied volatility was 23.7%, which implies a crude oil price range of $71.72–$76.58 by July 6.

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

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