Trade Tracker: Stephanie Link buys SLB

Investment Recommendation - Stephanie initiated a new buy position in SLB, citing a compelling valuation at 138 times earnings and a 3% yield [1][2] - The analyst prefers owning rather than renting in the energy space, suggesting a long-term investment approach [4] SLB's Competitive Advantages and Growth Drivers - SLB is the number one oil field services company globally, poised to benefit from customer spending, with top 10 customers' capex expected to reach $28 billion this year [2] - SLB is a technology leader in its sector, experiencing margin expansion and strong customer retention, further boosted by a synergistic and accretive deal [3] Broader Energy Sector Dynamics - The energy sector has shown positive performance despite a 16% year-to-date decrease in crude oil prices, driven by natural gas [6] - Natural gas prices have risen from below $2 to $5, fueled by a cold winter and global demand for liquified natural gas from the United States [6] - Major diversified companies like Exxon Mobile, involved in natural gas, refining, chemicals, transportation, and distribution, are well-positioned in the energy sector [7] Investment Strategies in Oil and Gas - Stabilizing oil prices in the $60s could make EMP players attractive, suggesting a dollar-cost averaging strategy [5] - Pipelines and mineral rights with high distribution yields, such as Viper Energy and Energy Transfer, are viable investment options [5]