With a market cap of $56.4 billion, Schlumberger Limited (SLB) is a leading global oilfield services company that provides technology and solutions to the oil and gas industry. With operations in key markets worldwide, it supports exploration, drilling, well construction, and hydrocarbon production. Schlumberger operates through four divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems.
Shares of the world’s largest oil driller have underperformed the broader market over the past 52 weeks. SLB stock has declined 18.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 22.7%. However, shares of SLB are up 5.1% on a YTD basis, outperforming SPX’s 2.7% gain.
Looking closer, the Houston, Texas-based company has lagged behind the Energy Select Sector SPDR Fund's (XLE) 3.1% return over the past 52 weeks.
Shares of SLB climbed 6.1% on Jan. 17 due to its strong Q4 2024 earnings report, which exceeded expectations with EPS of $0.92. The company also reported higher-than-expected revenue of $9.3 billion, driven by robust growth in the Middle East and Asia. Investors reacted positively to SLB's margin expansion and increased adoption of AI and autonomous operations. Additionally, SLB’s strong free cash flow of $1.6 billion and a reduction in 2025 capital investment projections to $2.3 billion from $2.6 billion in 2024, reinforced confidence.
For the current fiscal year, ending in December 2025, analysts expect SLB's EPS to dip marginally year-over-year to $3.38. However, the company's earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 25 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 17 “Strong Buy” ratings, three “Moderate Buys,” and five “Holds.”
This configuration is less bullish than three months ago, with 19 “Strong Buy” ratings on the stock.
On Jan. 22, BofA raised SLB's price target to $48 and maintained a “Buy” rating, citing steady core revenue guidance for 2025. The firm also increased its 2025 and 2026 EBITDA estimates by 2% and 1%, respectively, following SLB’s strong Q4 earnings report.
As of writing, SLB is trading below the mean price target of $53.46. The Street-high price target of $64.50 implies a potential upside of 60.1%.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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