Stock Analysis | Schlumberger Outlook - Technical Weakness Looms Despite Strong Buy Analysts

Market Snapshot

Takeaway: Schlumberger (SLB) faces a bearish technical outlook with an internal diagnostic score of 2.81, suggesting a weak trend and potential risk of decline, even as analysts remain optimistic.

News Highlights

• Major Energy Deals: Two large energy companies announced a partnership to boost Michigan-based manufacturing, potentially signaling a positive shift in the energy sector that could benefit Schlumberger’s operations in equipment and services.
• Acquisition Update: Herc Holdings completed its tender offer for H&E Equipment Services, expected to close on June 2. While this is a separate deal, it highlights broader industry consolidation trends that may ripple into Schlumberger’s market.
• New Energy Momentum: A foreign media delegation visited Jinan to explore developments in China’s new energy industry, including green and low-carbon technologies. This could indirectly impact Schlumberger’s exposure to alternative energy projects.

Analyst Views & Fundamentals

Schlumberger has received Strong Buy ratings from both Melius Research and UBS in the past 20 days, with an average rating score of 5.00 and a weighted rating score of 4.44. Analysts are broadly optimistic, though there is some divergence in historical performance: Melius Research has a perfect 100.00% historical win rate, while UBS has a 66.70% win rate.

These ratings align with the recent 8.23% price increase, though the internal diagnostic score of 2.81 from technical analysis suggests caution. Key fundamentals include:

• Revenue-MV: Score 1.00, value 0.85
• Net Income-Revenue: Score 3.00, value 32.84%
• Net Cash Flow from Operating Activities / Operating Revenue: Score 3.00, value 10.58%
• PE Ratio: Score 0.00, value 44.87
• Operating Cycle: Score 3.00, value 147.07 days
• Net Cash Flow / Total Liabilities: Score 2.00, value 6.62%

The mixed fundamental picture reflects moderate profitability and cash flow but a relatively high P/E and long operating cycle.

Money-Flow Trends

Despite the bearish technical outlook, fund flow data is positive, with an internal diagnostic score of 7.87. Large, extra-large, and medium-sized investors are all showing inflows—each with ratios above 48%. This suggests that while retail traders may be cautious, institutional money remains bullish, possibly driven by the broader energy sector optimism.

Key Technical Signals

Schlumberger’s technical indicators are mostly bearish, with 3 out of 4 showing weakness:

• WR Overbought: internal diagnostic score of 1.00 – Biased bearish, with 44 historical signals and an average return of -0.54%
• WR Oversold: internal diagnostic score of 3.28 – Neutral rise, with 68 historical signals and an average return of 0.11%
• RSI Overbought: internal diagnostic score of 1.00 – Biased bearish, with 4 historical signals and an average return of -1.30%
• MACD Golden Cross: internal diagnostic score of 5.95 – Neutral rise, with 10 historical signals and an average return of 0.24%

Recent Chart Patterns:

• 2025-08-19: MACD Golden Cross (neutral rise)
• 2025-08-22: WR Overbought and RSI Overbought (both biased bearish)

Internal diagnostic insights: Bearish signals are clearly dominant (3 vs. 0 bullish), and the technical outlook is weak. Traders should consider the risk of a downward trend.

Conclusion

Schlumberger is caught in a tug-of-war between bearish technical signals and strong analyst optimism. While institutional money continues to flow in (score 7.87), technical indicators suggest caution with a score of 2.81. Investors might consider waiting for a pull-back or using the current price rise as an opportunity to take partial profits, especially as earnings or industry-specific catalysts could shift the momentum soon.