Schlumberger Outlook - Bearish Technicals and Mixed Analyst Optimism

Market Snapshot: Weak Technicals Suggest Avoidance

Despite recent analyst optimism, Schlumberger (SLB) shows a weak technical outlook, with 3 bearish indicators and no bullish signals in the last 5 days, according to our internal diagnostic score of 3.86/10. The stock is currently up 0.36% but faces strong resistance from overbought conditions and bearish candlestick patterns.

News Highlights: Energy and Policy Developments

Recent headlines suggest a shift in energy policy and market dynamics may be influencing investor sentiment:

• U.S. Geothermal Expansion: The Interior Department has fast-tracked emergency permitting for geothermal projects, aligning with President Trump’s energy agenda. This could benefit Schlumberger’s energy services in the long term.
• Uranium Mining Revival: Utah-based uranium mining efforts are gaining momentum under Trump's policies. Although industry revival may lag without higher prices, the trend signals growing interest in traditional energy sources.
• China's PMI Slight Improvement: Despite a contraction in China’s factory activity, the PMI rose to 49.5 in May, showing signs of stabilization. This could indirectly benefit global energy demand, though the impact on Schlumberger may take time to materialize.

Analyst Views & Fundamentals: Optimism vs. Weakness

Analysts remain cautiously optimistic, with a simple average rating of 5.00 and a performance-weighted average of 4.44. However, ratings are not aligned, with analysts from Melius Research and UBS both giving "Strong Buy" ratings, but differing in historical performance. The current price is trending upward (+0.36%), aligning with the market's optimistic bias.

Key Fundamentals:

• Net Profit Margin: 33.06% (internal diagnostic score: 4.37/10)
• Equity Ratio (Liabilities / Equity): 134.07% (score: 1.00/10)
• Interest Coverage Ratio: 912.46% (score: 3.59/10)
• Operating Cycle: 147.07 days (score: 1.61/10)
• Equity Multiplier (DuPont): 235.82% (score: 1.51/10)

Money-Flow Trends: Mixed Signals from Big Money and Retail

While overall inflow remains neutral (overall_inflow_ratio: 48.73%), there's a negative trend in large and extra-large institutional flows, with 47.95% and 49.80% inflow ratios, respectively. The block_trend is also negative (48.56% inflow ratio), suggesting caution among big money players. However, small retail inflows are positive (50.57%), showing some retail interest despite broader weakness.

Key Technical Signals: Bearish Pressure and Overbought Conditions

Technical indicators are heavily bearish, with 3 negative signals and no bullish ones in the last 5 days. Our internal technical score is a weak 3.86/10.

Recent Indicators and Their Internal Diagnostic Scores:

• RSI Overbought: Score: 1.32/10 — historically shows poor returns and a bearish bias.
• WR Overbought: Score: 1.51/10 — neutral bias, but with a low win rate.
• Marubozu White: Score: 3.27/10 — neutral bias, but with mixed returns.

Recent Chart Patterns (by date):

• 2025-08-28: RSI and WR overbought signals
• 2025-08-29: RSI, WR, and Marubozu White signals — bearish divergence
• 2025-09-03: Ex-Dividend and Record Dates — no strong directional signal

Conclusion: Proceed with Caution and Watch for Catalysts

While analysts see potential in Schlumberger, the technical picture remains weak, with bearish indicators dominating and overbought conditions failing to break through. Retail investors may be showing interest, but institutional flows are pulling back. With the fundamentals mixed and technicals under pressure, we recommend considering a wait for a pullback or clearer momentum before entering a position. Keep an eye on the September dividend dates and any earnings updates for potential catalysts to reevaluate the outlook.