Wednesday, January 21, 2015

Schlumberger (SLB) Stock Trading Up Today Amid Higher Oil Prices

NEW YORK (TheStreet) -- Shares of Schlumberger are trading in the green, higher by 1.8% to $81.93 in afternoon trading Wednesday, as heads of both France's and Italy's largest energy producers, Total and ENI SpA announced they were reducing capital expenditure next year, including U.S. shale investments, according to Reuters. Brent has fallen by about 60% since June of 2014, amid oversupply and the decision by the Organization of the Petroleum Exporting Countries to maintain output despite the global supply glut. Brent crude for March delivery is up 1.08% to $48.51 a barrel as of 1:43 p.m. ET, while WTI crude is up 1.72% to $47.27 a barrel 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. Houston, TX-based Schlumberger is the supplier of technology, integrated project management and information solutions to the international oil and gas exploration and production industry. Separately, TheStreet Ratings team rates SCHLUMBERGER LTD as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: "We rate SCHLUMBERGER LTD (SLB) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and disappointing return on equity." 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 7.4%. Since the same quarter one year prior, revenues slightly increased by 6.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.32, which illustrates the ability to avoid short-term cash problems. The gross profit margin for SCHLUMBERGER LTD is rather low; currently it is at 23.34%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.38% trails that of the industry average. The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Energy Equipment & Services industry. The net income has significantly decreased by 81.8% when compared to the same quarter one year ago, falling from $1,664.00 million to $302.00 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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