Stock Analysis | Schlumberger Outlook - A Stock Under Technical and Market Scrutiny

Market Snapshot

Headline Takeaway: Schlumberger (SLB) faces a weak technical outlook with bearish signals dominating, but fundamentals show a mixed picture with some strong indicators. Stance: Cautious.

News Highlights

Recent news points to broader economic and energy sector shifts:

• U.S. Geothermal Fast-Track: The government announced emergency permitting for geothermal projects, potentially benefiting Schlumberger through accelerated energy transition efforts.
• NextEra Investor Meetings: While not directly tied to Schlumberger, the focus on energy company growth by major players like NextEra signals industry momentum, which may indirectly influence Schlumberger’s performance.
• China’s PMI Slows: China’s factory activity continued to contract in May, though at a slower pace, suggesting weaker global demand for energy resources and possibly impacting Schlumberger’s international operations.

Analyst Views & Fundamentals

Analysts remain cautiously optimistic about Schlumberger. The simple average rating is 5.00, while the weighted rating is 4.44. Despite the slight difference, both scores indicate a positive market outlook. However, ratings are somewhat dispersed, with no consensus—some analysts rate it "Strong Buy," while others take a more measured approach.

The current price trend shows a 0.59% rise, which aligns with the overall weighted expectations. This suggests that investor sentiment is somewhat optimistic, although technical indicators tell a different story.

Key fundamental factors and their model scores (each score is an internal diagnostic score (0-10)):

• Net Income to Revenue (3.0): 33.06%
• ROA (2.0): 2.15%
• Net Profit to Market Value (1.0): 2.88%
• EBIT/Interest Expense (1.0): 912.46%
• Net Cash Flow to Liabilities (3.0): 6.62%
• Net Profit Margin (2.0): 12.26%
• Basic EPS YoY Growth (3.0): -13.07%
• Diluted EPS YoY Growth (3.0): -12.58%

While several metrics are strong, earnings growth remains a concern, with both basic and diluted EPS declining year-over-year. Cash flow and interest coverage remain robust, offering a layer of financial safety.

Money-Flow Trends

Despite the mixed technical and fundamental signals, big money is showing some positive intent. The fund-flow score is 7.83 (good), indicating that large, extra-large, and block investors are all seeing inflows, albeit at slightly less than 50% of historical averages. Small and medium investors are also contributing, though with a more negative bias. This suggests that institutional and large-cap investors are taking a longer-term view on the stock, even as the technical outlook remains bearish.

Key Technical Signals

Schlumberger’s technical indicators point to a weak market, with 3 bearish signals and 0 bullish ones. The technical score is 3.86 (weak), and the model advises avoiding the stock.

Recent Indicators by Date:

• September 3, 2025: Ex-Dividend Date and Dividend Record Date (both neutral)
• August 29, 2025: WR Overbought, RSI Overbought, and Marubozu White (all bearish)
• August 28, 2025: WR Overbought and RSI Overbought

Internal Diagnostic Scores by Indicator:

• WR Overbought: 1.51 – Weak bearish signal
• RSI Overbought: 1.32 – Strong bearish signal
• Marubozu White: 3.27 – Moderately bearish

These signals suggest that the market is in a volatile state with no clear direction and that bearish momentum is dominant. The chart patterns over the last five days reflect growing bearish sentiment and limited support from bullish forces.

Conclusion

Despite a positive fundamental outlook and some encouraging institutional money-flow, Schlumberger faces a challenging technical landscape. With a technical score of 3.86 and three bearish indicators, the model advises investors to consider waiting for a pull-back or clearer signals before entering a position. Keep an eye on the upcoming earnings report to see if fundamentals can provide a stronger counterbalance to the current bearish trend.