Stock Analysis | Schlumberger Outlook - A Cautious View Amid Mixed Signals

Market Snapshot

Takeaway: Schlumberger (SLB) is currently underperforming, with a recent price drop of -0.60%, and technical indicators leaning bearish. Our internal diagnostic score (0-10) for technicals is 3.38, signaling a weak trend.

News Highlights

Recent news affecting the energy and construction sectors could indirectly impact Schlumberger:

• Two major U.S. energy companies have pledged to buy Michigan-made equipment, signaling a push toward domestic manufacturing in the energy sector. This could support long-term industry growth.
• Herc Holdings completed its tender offer for H&E Equipment Services, a move that could reshape competitive dynamics in the equipment rental space. While not directly tied to SLB, it reflects broader sector consolidation.
• Jinan, China, is spotlighting its green energy initiatives, including low-carbon vehicle-grid interactive technology. As a global oilfield services provider, Schlumberger may benefit from the growing emphasis on green energy solutions in the long term.

Analyst Views & Fundamentals

Analysts remain divided, with a simple average rating of 4.43 and a historically performance-weighted rating of 3.04. This indicates some inconsistency in expectations, with "Strong Buy" ratings dominating despite recent price declines.

The internal diagnostic score (0-10) for fundamentals is 6.9, suggesting moderate strength, though certain factors point to recent declines:

• Net profit attributable to parent company shareholders / Net profit is at 96.48%, with a score of 2.00.
• Net income / Revenue stands at 32.82%, with a score of 3.00.
• Profitability / Market Value is at 60.94%, with a score of 3.00.
• Return on Assets (ROA) is 2.15%, with a score of 2.00.
• Basic earnings per share growth rate is -13.07%, with a score of 3.00.
• Net profit margin (NPM) is 12.26%, with a score of 1.00.

The mismatch between strong analyst expectations and weak fundamentals or price action suggests caution.

Money-Flow Trends

Big money is moving out of Schlumberger across all investor categories. The internal diagnostic score (0-10) for fund flows is 7.77, which is positive, but the actual trends are negative:

• Small investor inflow ratio: 49.06% (negative trend)
• Medium investor inflow ratio: 47.85% (negative trend)
• Large investor inflow ratio: 48.45% (negative trend)
• Extra-large investor inflow ratio: 47.82% (negative trend)

This suggests that despite positive model scores, institutional and large-cap investors are currently avoiding the stock, a sign of bearish sentiment.

Key Technical Signals

Technically, Schlumberger is in a weak position. The internal diagnostic score (0-10) for technical indicators is 3.38. Recent chart patterns include:

• WR Oversold: This pattern appears frequently (5 out of 5 days in the last week), with an internal diagnostic score (0-10) of 3.28. It suggests a neutral rise, but not enough to support a bullish trend.
• Bearish Engulfing: Identified on 2025-08-06, with an internal diagnostic score (0-10) of 3.47. This pattern indicates a potential reversal or downward move.

Key insight: The technical environment is volatile, with no clear direction. Bearish signals (2) outnumber bullish ones (0), reinforcing the weak trend and suggesting a potential pullback.

Conclusion

Schlumberger is currently facing a mix of weak technicals and mixed analyst opinions, with big-money flows leaning negative. While fundamental scores are moderately strong, they don't align with the recent price action. Given the current environment, we recommend investors consider waiting for a clearer trend or a pull-back before entering or adding to positions.