SLB (SLB) Declines More Than Market: Some Information for Investors

Core Viewpoint - SLB is experiencing a decline in stock price despite a significant gain over the past month, with upcoming earnings expected to show a decrease in EPS but an increase in revenue [1][2]. Group 1: Stock Performance - SLB closed at $42.37, reflecting a -2.89% change from the previous day, underperforming the S&P 500's loss of 0.34% [1] - Over the past month, SLB shares have increased by 13.92%, while the Business Services sector and S&P 500 gained 2.46% and 1.19%, respectively [1]. Group 2: Earnings Expectations - SLB is set to release its earnings report on January 23, 2026, with an anticipated EPS of $0.74, indicating a 19.57% decline from the same quarter last year [2]. - The consensus estimate projects revenue of $9.54 billion, which represents a 2.74% increase compared to the equivalent quarter last year [2]. Group 3: Full Year Projections - For the full year, earnings are projected at $2.89 per share, reflecting a -15.25% change from the previous year, while revenue is expected to remain flat at $35.78 billion [3]. Group 4: Analyst Sentiment - Recent changes in analyst estimates for SLB suggest a positive outlook on the company's business operations and profit generation capabilities [3]. - The Zacks Rank system currently rates SLB at 4 (Sell), indicating a lack of upward momentum in EPS estimates over the past month [5]. Group 5: Valuation Metrics - SLB is trading at a Forward P/E ratio of 14.91, which is lower than the industry average of 17.07, suggesting that SLB may be undervalued [6]. - The Technology Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 109, placing it in the top 45% of over 250 industries [6].