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Schlumberger Is Up 31% in 2019: Can It Maintain Momentum?

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Schlumberger in 2019

Schlumberger (SLB) has risen 31% so far in 2019. The stock has outperformed peers Halliburton (HAL), National Oilwell Varco (NOV), and Baker Hughes (BHGE) year-to-date. These stocks are up 19%, 6%, and 20%, respectively, in 2019. Schlumberger is trading above its 50-day moving average but below its 200-day moving average. The stock is finding resistance around its 50-day average levels. If SLB sustains above this level, it may signal further strength in the stock.

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Valuation

Schlumberger is trading at a forward PE ratio of ~26.9, which is 11% lower than its five-year average forward PE. However, the ratio is higher compared to its peers. The stock offers a yield of ~4.2%.

Analyst recommendations

Of the 35 Reuters-surveyed analysts covering Schlumberger, five rated it as a “strong buy,” 15 analysts rated it as a “buy,” and the remaining 15 rated it as a “hold.” The mean price target for Schlumberger is $53.5, which implies an upside potential of ~12% from its current price.

For the latest earnings coverage on energy stocks, refer to Market Realist’s Energy and Power page.

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