Core Viewpoint - The article discusses the recent developments in trade negotiations, the impact of tariffs on inflation, and the upcoming economic data releases that could influence monetary policy decisions in the US and Europe [1][3][6]. Trade Negotiations and Tariffs - President Trump announced a new round of reciprocal tariffs on several trade partners, leading to a decline in US stock markets, with the Dow Jones down 1.02% and the S&P 500 down 0.31% for the week [1]. - The deadline for the new tariffs to take effect is August 1, and investors are awaiting further news on trade negotiations [1][3]. - The EU is attempting to reach a trade agreement with the US, with concerns that US tariffs could disrupt transatlantic supply chains [6]. Economic Data and Monetary Policy - The upcoming US inflation data, particularly the Consumer Price Index (CPI) for June, is expected to influence the Federal Reserve's decision on potential interest rate cuts later this year [3]. - The Federal Reserve's June meeting minutes indicated concerns about inflation pressures from tariffs, but a belief that a rate cut may occur later in the year [3]. - In the UK, inflation has risen, with the CPI at 3.4% in May, and expectations for a potential rate cut by the Bank of England if economic data continues to underperform [7]. Commodity Markets - Oil prices have stabilized, with WTI crude oil rising 2.16% to $68.45 per barrel and Brent crude oil increasing 3.02% to $70.36 per barrel, amid concerns over summer supply and demand [4]. - Gold prices have also rebounded, with COMEX gold rising 0.73% to $3356 per ounce, as investors seek safe-haven assets amid trade uncertainties [5]. Upcoming Economic Indicators - Key economic indicators to watch include the US PPI, industrial production, and retail sales data, as well as consumer sentiment surveys [3][9]. - In Europe, the ZEW economic sentiment index for Germany will be released, reflecting the economic outlook amid trade tensions [6].

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Schlumberger due to lower revenues, with the actual results being crucial for near-term stock price movements [1][2]. Earnings Expectations - Schlumberger is expected to report quarterly earnings of $0.74 per share, reflecting a year-over-year decrease of 12.9% [3]. - Revenues are projected to be $8.48 billion, down 7.2% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 2.86% lower in the last 30 days, indicating a bearish sentiment among analysts [4]. - The Most Accurate Estimate for Schlumberger is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.26% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation from the consensus estimate, with positive readings being more predictive of earnings beats [9][10]. - Schlumberger currently holds a Zacks Rank of 5, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, Schlumberger was expected to earn $0.74 per share but delivered $0.72, resulting in a surprise of -2.70% [13]. - Over the past four quarters, Schlumberger has beaten consensus EPS estimates three times [14]. Conclusion - Schlumberger does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [17].

Group 1 - The focus is on growth and dividend income as a strategy for retirement planning [1] - The portfolio is structured to generate monthly dividend income that grows through reinvestment and annual increases [1] Group 2 - The article expresses personal opinions and is not intended as investment advice [2][3] - It emphasizes the importance of conducting individual research before making investment decisions [2]

Group 1 - The focus is on growth and dividend income as a strategy for retirement planning [1] - The portfolio is structured to generate monthly dividend income that grows through reinvestment and annual increases [1] Group 2 - The article expresses personal opinions and is not intended as investment advice [2][3] - It emphasizes the importance of conducting individual research before making investment decisions [2]

Core Viewpoint - The article discusses the reliability of Wall Street analysts' recommendations, particularly focusing on Schlumberger (SLB), and emphasizes the importance of using these recommendations in conjunction with other research tools like the Zacks Rank. Group 1: Brokerage Recommendations - Schlumberger has an average brokerage recommendation (ABR) of 1.40, indicating a consensus between Strong Buy and Buy based on 25 brokerage firms' recommendations [2] - Out of the 25 recommendations, 18 are Strong Buy and 4 are Buy, which represent 72% and 16% of all recommendations respectively [2] - Despite the positive ABR, it is cautioned that investors should not rely solely on this information for investment decisions, as studies show limited success of brokerage recommendations in predicting stock price increases [5][10] Group 2: Analyst Bias and Zacks Rank - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, with five "Strong Buy" recommendations for every "Strong Sell" [6] - The Zacks Rank, which is based on earnings estimate revisions, is presented as a more reliable indicator of a stock's near-term price performance compared to ABR [8][11] - The Zacks Rank is distinct from ABR, as it is a quantitative model that reflects timely earnings estimate revisions, while ABR may not always be up-to-date [9][13] Group 3: Earnings Estimates and Investment Outlook - The Zacks Consensus Estimate for Schlumberger has declined by 1.5% over the past month to $3.04, indicating growing pessimism among analysts regarding the company's earnings prospects [14] - This decline in earnings estimates has resulted in a Zacks Rank of 4 (Sell) for Schlumberger, suggesting caution despite the Buy-equivalent ABR [15]

Core Insights - SLB anticipates flat revenues and core profit for Q2 2025 due to unexpected slowdown in drilling activity in Saudi Arabia and Latin America [1][9] - CEO Olivier Le Peuch highlighted that actual field activity diverged from original assumptions, particularly in the Middle East and South America [2][3] Drilling Activity - Several drilling rigs were demobilized in Saudi Arabia, and operations at the Jafurah unconventional gas field were paused, significantly impacting operational performance [3] - In Latin America, a decline in short-cycle project activity has further pressured top-line growth, reflecting shifting customer behavior [4] Margin Pressure - The company expects its margin profile to be affected by an unfavorable geographical activity mix, with declines in higher-margin operations in the Middle East and Latin America [5] - SLB anticipates Q2 EBITDA to be flat quarter over quarter, slightly below prior guidance due to cost rigidity in service delivery [5] Geopolitical Risks - The current forecast assumes no disruptions in the Persian Gulf amid ongoing geopolitical tensions, with any escalation posing additional downside risks [6] Shareholder Returns - Despite operational challenges, SLB remains committed to its capital return program, planning to return at least $4 billion to shareholders in 2025 [7]

Company Overview - SLB is reorienting its business to adapt to depressed activity levels, particularly in the onshore US market, with a focus on long-term growth in its New Energy and Digital businesses [1] Investment Strategy - Narweena, an asset manager led by Richard Durant, seeks to identify market dislocations due to poor understanding of long-term business prospects, aiming for excess risk-adjusted returns through secular growth opportunities in markets with barriers to entry [1] - The research process emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and long-term investment horizon targeting deeply undervalued stocks [1] Market Dynamics - An aging population with low growth and stagnating productivity is expected to create new investment opportunities, contrasting with industries facing stagnation or secular decline, which may improve business performance due to reduced competition [1] - The economy is increasingly dominated by asset-light businesses, leading to a declining need for infrastructure investments, resulting in a large pool of capital chasing limited investment opportunities, driving up asset prices and compressing risk premia over time [1] Leadership Background - Richard Durant holds undergraduate degrees in engineering and finance from the University of Adelaide and an MBA from Nanyang Technological University, along with having passed the CFA exams [1]

Schlumberger (SLB) closed the most recent trading day at $33.73, moving -5.89% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.96%. On the other hand, the Dow registered a gain of 0.89%, and the technology-centric Nasdaq increased by 0.94%. Prior to today's trading, shares of the world's largest oilfield services company had gained 6.48% lagged the Oils-Energy sector's gain of 6.67% and outpaced the S&P 500's gain of 0.5%.Market participants will be closel ...

Core Insights - SLB shares have decreased by 6.5% over the past six months, outperforming the oil-energy sector's decline of 8.2% and peers like Core Laboratories and Oceaneering International, which fell by 27.3% and 17.3% respectively [1][5] - The stock is currently trading above its 50-day simple moving average (SMA), indicating a bullish trend [3][5] - SLB has a VGM Score of B, reflecting value and positive earnings surprises, although it lags slightly in momentum with a C score [5][7] Financial Performance - SLB has surpassed earnings estimates in three of the last four quarters, with an average earnings surprise of 0.77% [8] - The average target price for SLB, based on 27 analysts, is $48.50 per share, suggesting a potential upside of 35.29% from the last closing price [9] Market Position and Strategy - SLB's strong international market presence provides a competitive edge, particularly in securing new offshore projects and long-term agreements with state-owned companies [12] - Despite challenges in certain regions, revenues in key markets like the UAE, North Africa, and China have shown double-digit growth, contributing to more stable earnings [13] - The company's New Energy portfolio, including carbon capture and geothermal projects, is expected to generate over $1 billion in annual revenues by 2025, aligning with global decarbonization trends [14] - Ongoing cost-control initiatives have led to an adjusted EBITDA margin increase to 23.8%, despite a 3% year-over-year revenue decline in Q1 2025 [15] - SLB's diversification into data center infrastructure solutions is showing strong growth, particularly in North America, driven by demand from hyperscalers and AI [16]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The service offers a free two-week trial for potential investors to explore exclusive income-focused portfolios [1] Group 2 - The stock market is viewed as a mechanism for transferring wealth from the impatient to the patient, emphasizing the importance of a long-term investment horizon [2] - The focus is on defensive stocks suitable for medium- to long-term investment strategies [2]