Stock Analysis | Schlumberger Outlook - Mixed Signals Amid Weak Technicals and Strong Analyst Optimism

1. Market Snapshot: Price Rises, But Technicals Signal Weakness

Schlumberger (SLB.N) has seen a recent price rise of 1.74%, yet technical indicators remain bearish, with an internal diagnostic score of 3.67 out of 10. Analysts are split in their expectations, and while money flows show inflows, the overall trend remains negative.

2. News Highlights: Energy Firms and New Market Developments

• Herc Holdings Completes Tender Offer for H&E Equipment Services – On May 30, 2025, Herc Holdings (HRI) completed a tender offer to acquire H&E Equipment Services, with the merger expected to close on June 2. The deal values each H&E share at $78.75 in cash and 0.1287 Herc shares. This development could signal continued consolidation in the equipment services sector, potentially affecting Schlumberger’s competitive landscape.
• Two Large Energy Firms Commit to Michigan Manufacturing – A new public-private partnership in Michigan aims to strengthen local energy equipment manufacturing, which could benefit Schlumberger and similar firms in the long run by boosting domestic production and supply chain resilience.
• Global Hydrogen and New Energy Investments – From China to the U.S., there is a push toward hydrogen storage, green vehicles, and renewable energy infrastructure. While these trends are still developing, they could eventually shape the demand for Schlumberger’s services in the energy transition.

3. Analyst Views & Fundamentals: Optimism Outweighs Weak Technicals

Schlumberger has drawn mixed analyst attention in the last 20 days, with two firms issuing “Strong Buy” ratings. The simple average rating is 5.00, while the performance-weighted rating is 1.66, reflecting a wide disparity in analyst sentiment. Notably, the price is rising, but the market expectations remain pessimistic, indicating a mismatch between analyst ratings and actual price action.

Fundamental Highlights (with internal diagnostic scores):

• Net Income to Revenue: 32.88% – This reflects healthy profitability. It has an internal diagnostic score of 3.28/10.
• Return on Assets (ROA): 2.15% – A modest ROA, but still positive. Internal score: 3.47/10.
• Net Profit Margin (NPM): 12.26% – Another strong profitability metric. Internal score: 4.27/10.
• Revenue to Market Value: 2.86% – This ratio is a bearish sign, indicating the stock may be overvalued. Internal score: 2.00/10.
• Net Cash Flow to Total Liabilities: 6.62% – A positive sign for liquidity. Internal score: 3.47/10.

Overall, Schlumberger shows a mixed bag of fundamentals, with strong profitability metrics but weaker valuation indicators. The internal fundamental score is 4.56/10.

4. Money-Flow Trends: Institutional Inflows, But Negative Momentum

Despite the negative technical picture, Schlumberger has seen inflows across all major investor categories. The block inflow ratio is 48.40%, indicating strong institutional interest. However, the overall trend is negative for all size classes, from small to extra-large investors. This suggests that while money is still flowing in, the trend is being driven more by inflow volume than by bullish momentum.

5. Key Technical Signals: Bearish Bias With Some Oversold Cues

Schlumberger’s technical indicators have been weak over the past five days, with two bearish and one neutral signal recorded. The technical score is 3.67/10, with the overall trend suggesting to avoid the stock.

Internal Diagnostic Scores for Technical Indicators:

• WR Oversold: 3.28/10 – A neutral to bearish signal that has been active on multiple dates recently.
• Bearish Engulfing: 3.47/10 – A bearish pattern, appearing twice in the last five days, which has a poor historical win rate of 44.44%.
• MACD Golden Cross: 4.27/10 – A neutral to bullish signal that appeared on August 19. However, its historical average return is negative (-0.53%), indicating limited reliability.

Recent Technical Events by Date:

• August 11: WR Oversold – A bearish reversal signal.
• August 6: WR Oversold & Bearish Engulfing – A double bearish signal, increasing the bearish pressure.
• August 19: MACD Golden Cross – A potential short-term bullish sign, but historically weak in performance.

These signals suggest that the stock is caught in a volatile, unclear direction with more bearish pressure than bullish. Investors should remain cautious and watch for confirmation of a clear trend.

6. Conclusion: Watch for Earnings and Price Confirmation

Despite a recent price rise of 1.74% and strong institutional inflows, Schlumberger is showing weak technical signals and mixed analyst views. With an internal technical score of 3.67/10 and fundamentals at 4.56/10, the stock is not clearly positioned as a strong buy or sell. Investors should consider waiting for a clearer trend or more confirmation from upcoming earnings and macroeconomic data before making a move. In the short term, the bearish bias dominates, but the fundamentals suggest resilience. Keep a close eye on the next earnings report and technical confirmation for direction.