Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 23 Aug, 24 | SLB | Buy | USD 44.12 | USD 48.0 | USD 51.0 | Same day | 15.6% |
Data Powered by EOD Historical Data (“EODHD”).
Schlumberger Limited engages in the provision of technology for the energy industry worldwide. The company operates through four divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. The company provides field development and hydrocarbon production, carbon management, integration of adjacent energy systems; reservoir interpretation and data processing services for exploration data; and well construction and production improvement services and products. It also offers subsurface geology and fluids evaluation information; open and cased hole services; exploration and production pressure, and flow-rate measurement services; and pressure pumping, well stimulation, and coiled tubing equipment solutions. In addition, the company offers mud logging, directional drilling, measurement-while-drilling, and logging-while-drilling services, as well as engineering support services; supplies drilling fluid systems; designs, manufactures, and markets roller cone and fixed cutter drill bits; bottom-hole-assembly and borehole enlargement technologies; well cementing products and services; well planning, well drilling, engineering, supervision, logistics, procurement, and contracting of third parties, as well as drilling rig management solutions; and drilling equipment and services, as well as land drilling rigs and related services. Further, it provides artificial lift production equipment and optimization services; supplies packers, safety valves, sand control technology, and various intelligent well completions technology and equipment; designs and manufactures valves, chokes, actuators, and surface trees; and OneSubsea an integrated solutions, products, systems, and services, including wellheads, subsea trees, manifolds and flowline connectors, control systems, connectors, and services. The company was formerly known as Socie´te´ de Prospection E´lectrique. Schlumberger Limited was founded in 1926 and is based in Houston, Texas.
Increased Shareholders' Wealth: ROE of 5.2% in Q1 FY24 vs Industry Median of 3.1%
Improved Profitability: Net Margin of 12.6% in Q1 FY24 vs Industry Median of 7.6%
Balance Sheet Risk: Debt-Equity Ratio of 0.59x in Q1 FY24 vs Industry Median of 0.43x
Higher Cash Cycle: 141.9 Days in Q1 FY24 vs Industry Median of 65.0 Days
Dependence on Major Oil Companies, Geographic Exposure, Technology Integration Challenges and Supply Chain Disruptions
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 44.12 | 40.0 | 48.0 | 51.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
SLB's stock price is currently hovering around a critical horizontal trendline support zone, suggesting a potential upward reversal in the near term. The 14-day Relative Strength Index (RSI) is showing a bullish divergence compared to the price action, which reinforces the positive bias. Furthermore, the stock is significantly below its 50-day SMA, and it may retest this level in the near term, potentially providing an opportunity for a rebound or reversal.
As per the above-mentioned price action and technical analysis, Schlumberger Limited is looking technically well-placed on the chart, and a ‘Buy’ recommendation has been given on the stock.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Energy Industry: Oil & Gas Equipment & Services
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| SLB Schlumberger NV |
0.17 0.37% | 44.30 | 18.64 | 14.51 | 2.34 | 3.87 | 2.64 | 11.32 |
| BKR Baker Hughes Co |
0.18 0.48% | 37.64 | 18.11 | 16.45 | 1.30 | 2.15 | 1.43 | 9.19 |
| HAL Halliburton Company |
0.32 1.05% | 30.36 | 12.44 | 10.36 | 1.42 | 3.54 | 1.72 | 8.38 |
| TS Tenaris SA ADR |
0.23 0.73% | 31.86 | 5.88 | 7.97 | 1.37 | 1.24 | 1.19 | 3.33 |
| TNRSF Tenaris S.A |
- -% | 15.55 | 5.68 | 7.58 | 1.33 | 1.18 | 1.17 | 3.27 |
Data Powered by EOD Historical Data (“EODHD”).
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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