Schlumberger Outlook - Mixed Signals Amid Volatile Market Conditions

1. Market Snapshot

Schlumberger is showing mixed signals, with weak technical indicators suggesting caution, while strong fundamentals offer some support. The recent price trend has been negative (-3.15%), but analysts remain optimistic, with a simple average rating of 5.00 and a performance-weighted rating of 4.44.

2. News Highlights

Recent developments across the energy and healthcare sectors may indirectly affect Schlumberger:

• Energy Transition Efforts: The U.S. government has accelerated permitting for geothermal projects, part of a broader energy strategy that could impact Schlumberger's operations in related fields.
• Uranium Mining Revival?: Under President Trump, a Utah uranium mine is being fast-tracked, potentially signaling a broader industry revival, though prices are still a limiting factor.
• U.S. Vaccination Policy Shift: Changes to how vaccines are approved and recommended may not directly affect Schlumberger, but market sentiment around public health policy remains sensitive.

3. Analyst Views & Fundamentals

Analysts are divided, with two recent "Strong Buy" ratings from UBS and Melius Research. The simple average rating is 5.00, while the performance-weighted rating is 4.44. This suggests optimism overall, but with some dispersion in views.

However, the current price trend (-3.15%) doesn't align with these upbeat expectations, highlighting a mismatch between market sentiment and price action.

Fundamental Highlights

• Return on Assets (ROA): 2.15% (internal diagnostic score: 5.03)
• Net Profit Margin (NPM): 12.26% (internal diagnostic score: 5.63)
• Net Income to Revenue: 33.06% (internal diagnostic score: 6.11)
• Basic Earnings per Share (YoY Growth): -13.07% (internal diagnostic score: 6.17)
• Net Profit Attributable to Shareholders (YoY Growth): -16.93% (internal diagnostic score: 6.34)
• Cash to Market Value: 36.15% (internal diagnostic score: 4.63)

4. Money-Flow Trends

Big-money investors are showing a negative trend overall, with large and extra-large investors outflowing. However, retail investors (small caps) are showing a positive trend. The inflow ratios are as follows:

• Small Inflow Ratio: 50.81%
• Medium Inflow Ratio: 49.34%
• Large Inflow Ratio: 49.64%
• Extra-Large Inflow Ratio: 47.57%

The overall inflow ratio is 48.48%, suggesting a mixed flow environment where retail and medium investors are more bullish compared to large institutional flows.

5. Key Technical Signals

Our technical analysis highlights the following key signals:

Recent Indicator Scores (Internal Diagnostic Scores 0-10)

• WR Overbought: 1.51 (bearish signal, potential downward correction likely)
• RSI Overbought: 1.32 (bearish bias, overbought condition)
• Ex-Dividend Date: 7.43 (bullish signal, historically linked to positive returns)
• Dividend Record Date: 7.43 (neutral to bullish, positive returns expected)
• Bullish Engulfing: 4.05 (modestly bullish pattern, mixed historical performance)
• Marubozu White: 3.27 (neutral bias, mixed signals)

Recent Chart Patterns (by Date)

• 2025-09-10: Bullish Engulfing pattern observed — a potential short-term reversal.
• 2025-09-03: Ex-Dividend and Dividend Record dates — historically linked to positive returns.
• 2025-08-29: WR Overbought, RSI Overbought, and Marubozu White — mixed signals indicating volatility and no clear trend.

Summary of Technical Outlook

The market for Schlumberger remains in a weak technical state, with mixed indicators and a lack of clear direction. The bullish engulfing pattern from early September is the only strong indicator, while overbought conditions in WR and RSI suggest caution. Investors should watch for consolidation or a potential breakout before making decisions.

6. Conclusion

Consider waiting for a clearer trend before taking a position in Schlumberger. While the fundamentals look reasonably strong, the technical picture is mixed with bearish overbought conditions. The recent bullish engulfing pattern offers hope for a near-term rebound, but the overbought indicators suggest caution. For now, a watchful stance is recommended as the market remains in flux.