Stock Analysis | Schlumberger Outlook - Mixed Signals Amid Technical Weakness and Analyst Optimism

Market Snapshot

Headline Takeaway: Schlumberger (SLB) is showing a weak technical profile, but fundamental and analyst scores suggest some underlying optimism—though caution is advised.

News Highlights

1. U.S. Vaccine Policy Changes: Recent updates to how the U.S. government approves and recommends vaccines could have ripple effects on the broader market, especially for energy and industrial stocks. While not directly tied to Schlumberger, any shift in federal health policies may influence macroeconomic sentiment.

2. Energy Sector Collaboration: Two large energy companies pledged to buy Michigan-made equipment, signaling a potential boost for local manufacturing and energy infrastructure. This could indirectly benefit Schlumberger, which operates in energy services and equipment supply chains.

3. Herc Holdings Completes Tender Offer for H&E Equipment: This acquisition in the equipment rental space shows increased activity in the sector, potentially reflecting growing demand for industrial and construction tools. Investors may view this as a sign of broader strength in the energy and equipment market, indirectly relevant to Schlumberger.

Analyst Views & Fundamentals

Average Rating Score: The simple average rating for SLB is 5.00, while the performance-weighted (historical) rating is 4.44. This suggests a generally optimistic outlook from analysts, though not overwhelmingly strong.

Rating Consistency: Analysts are not in full agreement—there are differences in the ratings. However, all recent ratings are “Strong Buy,” indicating a consensus on the upside, even if historical performance varies.

Alignment with Price Trend: The current price trend shows an 8.31% rise, which aligns with the generally bullish expectations from analysts.

Key Fundamental Factor Values:

• Revenue-to-Market Value (Revenue-MV): 84.79% — internal diagnostic score: 1/10
• Net Income / Revenue: 32.88% — internal diagnostic score: 3/10
• Operating Revenue (YoY Growth Rate): -4.54% — internal diagnostic score: 2/10
• Net Profit Margin (NPM): 12.26% — internal diagnostic score: 1/10
• PE Ratio: 44.87 — internal diagnostic score: 0/10
• Total Profit / EBIT: 89.04% — internal diagnostic score: 0/10

While the net income and net profit margin show some strength, the revenue growth is negative and the PE ratio is high, contributing to a cautious outlook from a fundamental standpoint.

Money-Flow Trends

Schlumberger is experiencing negative fund-flow trends across all investor categories, from small retail to extra-large institutional players. The fund-flow score is 7.88 (on a 0–10 scale), labeled as “good” in our scoring system. This might seem contradictory, but it reflects that while flows are negative, the magnitude of outflows is relatively modest, and not extreme enough to cause immediate concern.

Key Ratios:

• Overall Inflow Ratio: 48.21%
• Small Inflow Ratio: 49.29%
• Large Inflow Ratio: 49.06%
• Extra-Large Inflow Ratio: 47.96%

These numbers indicate that, while all groups are pulling back slightly, the outflows are not pronounced enough to trigger alarm. However, the negative trend should not be ignored for long-term investors.

Key Technical Signals

From a technical standpoint, Schlumberger’s chart is showing clear bearish signals:

• Williams %R Overbought: internal diagnostic score: 1/10 (Biased bearish)
• RSI Overbought: internal diagnostic score: 1/10 (Biased bearish)
• MACD Golden Cross: internal diagnostic score: 5.95/10 (Neutral rise)

Over the last five days, bearish indicators like WR Overbought and RSI Overbought have been active on multiple days, while the MACD Golden Cross appeared only once. This suggests a recent dominance of bearish momentum with limited counterbalancing bullish signs.

Key Insight: Technical indicators show the market is in a weak state, and we need to pay attention to the risk of decline. Bearish signals are clearly dominant (2 bearish vs 0 bullish).

Conclusion

Schlumberger currently sits at a crossroads: fundamentals and analyst ratings suggest some upside potential, but the technical setup is clearly weak with bearish momentum dominating. Given the internal diagnostic technical score of 2.65, our recommendation is to consider waiting for a pull-back before entering a long position. The recent bearish indicators and negative fund-flow trends signal caution, and until there is a clear reversal or confirmation of a strong upward trend, investors should remain defensive.