SLB Outperforms Industry in 6 Months: What Investors Should Know

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]