Schlumberger facing potential resistance ahead of earnings
Oil service provider Schlumberger (NYSE: SLB) is scheduled to release its second-quarter earnings results on July 19 and analysts expect the company to report earnings of $0.35 per share. The company earned $0.43 in the second quarter of 2018, meaning analysts expect an 18.6% decline in earnings on a year over year basis.
Schlumberger has been struggling for the last few years and the EPS have declined by an average of 3% per year over the last three years. Earnings were down by 21% in the first quarter compared to the first quarter of 2018.
In addition to the poor earnings results, the company’s management efficiency measurements are subpar. The ROE is 6.2% and the profit margin is 8.4%. Both of those figures are below average.
If the fundamentals weren’t enough, the technical picture is also pointing toward a rough period for Schlumberger. Looking at the weekly chart we see that the stock has been trending lower for the last year and a half and a trend line has formed that connects the highs from that period. The stock is closing in on the trend line now, but it is overbought on the daily chart.
In addition to the possible resistance looming just overhead, the Tickeron Trend Prediction Engine generated a bearish signal for Schlumberger on July 11. The signal shows a confidence level of 70% and it calls for a drop of at least 4% within the next month. Past predictions on Schlumberger have been successful 76% of the time.
SLB's RSI Oscillator recovers from overbought zone
The 10-day RSI Indicator for SLB moved out of overbought territory on October 08, 2024. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 instances where the indicator moved out of the overbought zone. In of the 36 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 15, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on SLB as a result. In of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SLB turned negative on October 17, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 42 similar instances when the indicator turned negative. In of the 42 cases the stock turned lower in the days that followed. This puts the odds of success at .
SLB moved below its 50-day moving average on October 18, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SLB declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 10-day moving average for SLB crossed bullishly above the 50-day moving average on October 07, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SLB advanced for three days, in of 317 cases, the price rose further within the following month. The odds of a continued upward trend are .
SLB may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 268 cases where SLB Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.918) is normal, around the industry mean (2.416). P/E Ratio (18.976) is within average values for comparable stocks, (41.810). Projected Growth (PEG Ratio) (1.258) is also within normal values, averaging (2.692). Dividend Yield (0.019) settles around the average of (0.040) among similar stocks. P/S Ratio (2.405) is also within normal values, averaging (1.544).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. SLB’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a provider of oilfield services such as distributing oil and gas information technologies and providing consulting services
Industry OilfieldServicesEquipment