Yahoo Finanza Why Schlumberger Stock Is Up By 5% Today
Schlumberger Stock Rallies As WTI Oil Gets Back Above The $70 Level
Shares of Schlumberger gained upside momentum after WTI oil managed to get above the $70 level amid supply concerns in the U.S. Other oil-related stocks are among top gainers in S&P 500 today.
It should be noted that investors did not rush to buy oil-related stocks before WTI oil managed to get back above the $70 level. It looks that stock traders were a bit skeptical on sector’s performance due to worries about the spread of the Delta variant of coronavirus, but now they are finally ready to buy oil-related stocks.
Not surprisingly, shares of industry leaders like Schlumberger benefit from traders’ interest in the segment. The stock is down by roughly 25% from its yearly peak that was reached at the beginning of June, so it may also attract value-oriented investors.
What’s Next For Schlumberger Stock?
Analysts expect that Schlumberger will report earnings of $1.26 per share in the current year and $1.77 per share in the next year, so the stock is trading at less than 16 forward P/E which looks cheap in the current market environment.
It should be noted that investors and traders have recently become more cautious when dealing with oil-related stocks due to coronavirus-related risks and the general shift towards renewable energy.
However, oil remains in high demand, and OPEC has just reiterated its forecast that world oil demand will grow by 6 million barrels per day (bpd) in 2021. In 2022, oil demand is projected to grow by 4.2 million bpd. This scenario looks bullish for oil services firms like Schlumberger which benefit from robust oil prices through higher demand and robust pricing for their services.
At current valuation levels, Schlumberger stock may attract value-oriented investors and opportunistic traders who may want to shift some funds from high-growth stocks as the market continues to pull back from historic highs.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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