Stock Analysis | Schlumberger Outlook - Mixed Signals Amid Volatility

Market Snapshot

Takeaway: Schlumberger (SLB) is in a volatile technical state with bearish signals dominating and a weak technology score of 4.04 (internal diagnostic score, 0-10).

News Highlights

• Energy Partnership in Michigan: Two major energy firms pledged to source more equipment from Michigan manufacturers. While this is a positive for the broader energy industry, it does not directly impact Schlumberger's operations, but it highlights ongoing demand for energy infrastructure.
• Herc Holdings Completes Tender Offer: Herc Holdings successfully completed its tender offer for H&E Equipment Services, signaling consolidation in the equipment services sector. This may indirectly reflect on Schlumberger's competitive landscape, though no direct link is evident.
• Jinan New Energy Momentum: A foreign media delegation visited the Jinan Start-up Area to explore new developments in China's new energy industry, including green charging and battery-swap demonstrations. While this is a long-term tailwind for energy innovation, its immediate impact on Schlumberger remains limited.

Analyst Views & Fundamentals

Average Rating Score: The simple average rating score stands at 5.00 (internal diagnostic score, 0-10), with a performance-weighted rating of 4.44 (internal diagnostic score, 0-10).

Consistency: Analyst ratings are not in perfect agreement, with some discrepancies in the signals. However, all recent ratings are "Strong Buy," aligning with the recent price rise of 7.68% over the last 20 days.

Fundamental Highlights:

• Net profit attributable to parent company shareholders / Net profit: 96.48% — score: 2 (internal diagnostic score, 0-10).
• Net income-Revenue: 33.06% — score: 3 (internal diagnostic score, 0-10).
• PE ratio: 44.87 — score: 0 (internal diagnostic score, 0-10).
• ROA (Return on Assets): 2.15% — score: 2 (internal diagnostic score, 0-10).
• Basic EPS YoY growth: -13.07% — score: 2 (internal diagnostic score, 0-10).
• Diluted EPS YoY growth: -12.58% — score: 2 (internal diagnostic score, 0-10).
• Net profit YoY growth: -16.93% — score: 2 (internal diagnostic score, 0-10).
• Cost of sales ratio: 81.10% — score: 2 (internal diagnostic score, 0-10).

While several fundamental indicators reflect strength in net profit and revenue performance, the low EPS and ROA growth, along with a high cost of sales, present a mixed picture. These factors are dragging down the overall score of 4.34 (internal diagnostic score, 0-10).

Money-Flow Trends

Schlumberger is currently facing negative fund-flow trends across all categories, including small, medium, and large investor flows. The overall inflow ratio is 0.4863, with block inflow ratio at 0.4868—both are slightly below average.

The fund-flow score is 7.89 (internal diagnostic score, 0-10), which is labeled as "good." This suggests that while there is a net outflow, the quality of large-block flows is relatively strong, potentially indicating strategic buying by institutional players.

Key Technical Signals

Schlumberger’s recent technical signals suggest a mixed picture, with bearish indicators outnumbering bullish ones. The technical score is 4.04 (internal diagnostic score, 0-10), which is classified as “Weak technology, need to be cautious.”

Top Technical Indicators (by internal score):

• Marubozu White: 6.57 (internal diagnostic score, 0-10) — A strong bullish candle pattern was observed, but this was not followed through on.
• Bullish Engulfing: 4.05 (internal diagnostic score, 0-10) — A positive reversal signal was flagged but failed to gain momentum.
• RSI Overbought: 3.73 (internal diagnostic score, 0-10) — Suggesting a potential short-term pullback.
• WR Overbought: 1.83 (internal diagnostic score, 0-10) — A weak signal indicating overbought conditions with historically poor returns.

Recent Chart Patterns:

• 2025-08-29: WR Overbought, RSI Overbought, and Marubozu White — mixed signals with bearish pressure.
• 2025-08-28: WR Overbought and RSI Overbought — both bearish indicators.
• 2025-08-27: WR Overbought and Bullish Engulfing — conflicting signals.

Overall, the key insight is that the market is in a volatile state, and the direction is not clear. Traders should be cautious as bearish signals dominate the 5-day window.

Conclusion

Despite a positive short-term price move and strong analyst ratings, Schlumberger faces a complex technical and fundamental landscape. With mixed signals, weak technical momentum, and negative earnings growth, the risk-reward tradeoff appears tilted toward caution.

Actionable Takeaway: Investors may want to consider waiting for a pull-back or a clearer directional shift before committing capital to SLB. Given the high volatility and unclear trend, patience and close monitoring of the next earnings report and RSI developments may be prudent strategies.