Stock Analysis | Schlumberger Outlook - Technical Weakness and Mixed Fundamentals

Market Snapshot

Takeaway: Schlumberger is currently in a volatile, directionless technical state with bearish signals dominating the chart. The stock has seen a recent price rise of 10.63%, but internal diagnostic scores point to caution.

News Highlights

• Energy Equipment Commitment: Two major energy companies pledged to buy Michigan-made equipment, highlighting growing interest in domestic manufacturing for the energy sector. This could indirectly benefit Schlumberger, which provides equipment and services to the global energy industry.
• Merger Update: Herc Holdings completed a tender offer to acquire H&E Equipment Services. While this merger is specific to another firm, it shows increased activity in the equipment leasing and services sector, which Schlumberger operates within.
• Hydrogen Industry News: Guofu Hydrogen Energy surged in a dark market trade, indicating optimism in the hydrogen storage and transportation space. As energy markets evolve, Schlumberger may find new opportunities in hydrogen and other alternative fuels.

Analyst Views & Fundamentals

Analysts are generally optimistic, with a simple average rating of 5.00 and a performance-weighted average of 4.44, indicating strong conviction in the long-term potential of the energy sector. However, rating consistency is low, with no strong agreement on the timing or magnitude of future gains. This contrasts with the 10.63% recent price rise, which suggests that while the stock has gained, investor sentiment is still divided.

Key Fundamental Factors

• Return on Assets (ROA): 2.15% – This is below industry averages, indicating weaker asset utilization. Internal diagnostic score: 2.14/10.
• Net Profit Margin (NPM): 12.26% – A healthy margin for the energy services sector. Internal diagnostic score: 2.78/10.
• Profit to Market Value (Profit-MV): 2.88% – Indicates modest alignment of earnings with market cap. Internal diagnostic score: 3.06/10.
• Operating Cash Flow to Revenue: 10.58% – Strong cash generation from operations. Internal diagnostic score: 3.00/10.
• Basic EPS Growth (YoY): -13.07% – A significant drop in earnings per share. Internal diagnostic score: 4.65/10.
• Total Profit Growth (YoY): -15.48% – Indicates a challenging recent period for profitability. Internal diagnostic score: 4.18/10.

Money-Flow Trends

Schlumberger is currently experiencing negative overall money-flow trends across all categories — from small to extra-large investors. The overall inflow ratio is 48.53%, suggesting that for every $100 of trading volume, just under half is coming in as new capital. The biggest concern is the block flow ratio at 48.63%, which typically indicates institutional selling or hedging activity. These trends suggest a cautious stance from large investors, despite recent price gains.

Key Technical Signals

Technically, Schlumberger is in a weak state, with 3 bearish and 1 neutral signals, and no bullish indicators over the last five days. Here’s how the key signals are performing:

• Williams %R Overbought: Internal diagnostic score: 1.16/10 – A bearish bias with a historical win rate of just 39.13%.
• RSI Overbought: Score: 1.91/10 – Suggests exhaustion of upward momentum. Historical return is -0.84% with 40% win rate.
• Bullish Engulfing: Score: 2.91/10 – A neutral to slightly positive candlestick pattern, but historically weak with a 42.86% win rate.
• Marubozu White: Score: 6.57/10 – A strong white candle, but historical performance has been mixed (66.67% win rate, -0.07% average return).

Recent chart patterns (by date):

• 2025-08-29: Williams %R and RSI overbought, plus Marubozu White — a mixed but bearish-looking consolidation pattern.
• 2025-08-27: Williams %R and a Bullish Engulfing — suggesting a potential short-term reversal, but bearish momentum remains dominant.

Conclusion

Schlumberger is showing mixed signals across its fundamentals, analyst ratings, and technicals. While the stock is up 10.63% recently and analysts remain bullish on the long-term energy services sector, the internal technical score is a weak 3.14/10, and bearish indicators are clearly in control. Large investor flows remain negative, and recent candlestick patterns are inconsistent.

Actionable takeaway: Consider waiting for a clearer trend or a pull-back before entering a position in Schlumberger. Watch for confirmation of a new bullish trend or a breakdown in overbought conditions before making a move.