2010 Analysis Of Schlumberger Limited (SLB)
So over the last couple of days we have dove more into the outlook for both Caterpillar (CAT) and Bank of America (BAC). Both members of my 2010 stock picks.
While it seems like roughly every stock has been booming since the start of the year, it is still not easy to get a clear picture of what’s to come. You’ll remember that 2009 started with a massive drop through March and then picked up the rally we are still experiencing today.
The main difference I note this time around though is the news is much brighter. Everything is not necessarily about spotting a bottom. Now the good companies are focusing on growth and trying to recover those levels once saw two years ago. In other words we are seeing signs of life rather than guessing when it will come.
In this article we are going to take a closer look at the current outlook for Schlumberger (SLB).
Barclays Capital upgrades Schlumberger price target for SLB from $64 to $73.
According to Barclays Capital, Schlumberger is a primary beneficiary of the most powerful secular and cyclical trends in the oil services industry. Schlumberger is well positioned to benefit from another growth cycle in international exploration and production spending, given its strong international market position, well built infrastructure throughout the eastern hemisphere, and its financial strength, the analyst says.
Schlumberger is expected to benefit more from the cyclical trends than its competitors because of the strength in its product line, the analyst says. SLB has a significant technology lead over its competitors and the gap is not narrowing.
Goldman Sachs analysts on Wednesday issued bullish comments on oil service firms:
Tenaris SA (TS), Halliburton Co. (HAL), Schlumberger (SLB) and Helmerich & Payne (HP) . Analysts said they view the four drillers as “the key secular winners” among oil service names, “given their leverage to growing service intensity in the U.S. shales and deepwater.”
Schlumberger faces key resistance.
Looking at the 1 year chart, we can see the Schlumberger has been on a very steady uptrend since March, and now we are at a point of resistance that can either have the stock climb to new levels or test lower supports. Essentially everything is bullish right now.
