Monday, January 5, 2015

Schlumberger (SLB) Stock Is Lower Today Amid Sliding Oil Prices

NEW YORK (TheStreet) -- Shares of Schlumberger are lower by 3.28% to $82.86 in afternoon trading on Monday. U.S. stocks are trading in a sea of red on the Dow Jones Industrial Average's worst day in three weeks, with crude prices breaking $50 a barrel this morning. Crude has dropped to its lowest level since April of 2009 after the Organization of the Petroleum Exporting Countries decided to maintain its production ceiling, Reuters reports. Brent for February delivery is down 5.69% to $53.21 a barrel as of 1:01 p.m. ET, while WTI crude is also down, 4.65% to $50.24 a barrel, after briefly hitting as low as $49.95 earlier today. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Separately, TheStreet Ratings team rates SCHLUMBERGER LTD as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate SCHLUMBERGER LTD (SLB) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins." Highlights from the analysis by TheStreet Ratings Team goes as follows: Despite its growing revenue, the company underperformed as compared with the industry average of 16.1%. Since the same quarter one year prior, revenues slightly increased by 8.9%. Growth in the company's revenue appears to have helped boost the earnings per share. The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, SLB has a quick ratio of 1.54, which demonstrates the ability of the company to cover short-term liquidity needs. SCHLUMBERGER LTD has improved earnings per share by 15.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SCHLUMBERGER LTD increased its bottom line by earning $5.11 versus $3.91 in the prior year. This year, the market expects an improvement in earnings ($5.53 versus $5.11). Net operating cash flow has increased to $3,087.00 million or 21.48% when compared to the same quarter last year. In addition, SCHLUMBERGER LTD has also modestly surpassed the industry average cash flow growth rate of 17.66%. The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Energy Equipment & Services industry average. The net income increased by 13.6% when compared to the same quarter one year prior, going from $1,715.00 million to $1,949.00 million. You can view the full analysis from the report here: SLB Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.


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