Schlumberger in 2019
Schlumberger (SLB) has risen ~26% in 2019 due to strength in crude oil prices. The stock has outperformed Baker Hughes (BHGE), Halliburton (HAL), and National Oilwell Varco (NOV) during this period. TechnipFMC (FTI) has risen nearly the same as Schlumberger. The VanEck Vectors Oil Services ETF (OIH) has risen ~28% year-to-date. Schlumberger’s EPS in the first quarter is expected to fall 21%. In the company’s results, investors will be looking for its outlook for upcoming quarters. A positive outlook might support the stock’s rise.
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Resistance at 50-day moving average
Schlumberger has been trading close to its 50-day moving average for roughly three months. The average is acting as a resistance for the stock. We’ll have to see if the stock breaks the resistance after its first-quarter results next week.
On April 4, Morgan Stanley raised its target price for Schlumberger from $45 to $48. Among the 37 analysts surveyed by Reuters covering Schlumberger, six recommended a “strong buy,” 16 recommended a “buy,” and 15 recommended a “hold.” The median target price of $52 implies an upside of 14% from Schlumberger’s current price.
In comparison, 31 out of the 35 analysts covering Halliburton recommended a “buy” or “strong buy.” Around 79% of the analysts recommended Baker Hughes as a “buy,” while 34% recommended National Oilwell Varco as a “buy.”
To learn how Kinder Morgan (KMI) might perform in the first quarter, read Kinder Morgan’s Q1 Earnings Are Expected to Rise 9%.