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What happened?
Last week, the Schlumberger Limited (SLB) stock fell to the lowest level since 2005. What is the reason for this decline and how serious are the problems of the company?
Why is it important?
In general
Schlumberger provides technology for reservoir characterization, drilling, production and processing of the oil and gas industry worldwide. The drop in oil prices due to rising trade tensions between the United States and ChinaThe People's Republic of China (中华人民共和国 in s … Read more has a negative impact on service companies. Halliburton Co., Schlumberger's main rival, is also under downward pressure.
For investorsWhat are valuable stocks? A valuable company is a company that … More
Lower oil prices are making producers reluctant to invest in infrastructure. This is a very serious problem for Schlumberger. It is clear that the oilfield services sector has not recovered from the 2014 oil crisis, as has Schlumberger. For this reason, S & P Global Inc. has reduced its debtDebt is a type of responsibility. This is an obligation for a pa … More grade AA- to A + at the end of May.
According to consensus forecasts, the company's EPS will decrease by 18.6% in the current quarter. The company will release its results on July 19th.
On the other hand, we can not help but notice that the stock has become cheap. The company's P / E ratio fell to 16.5, its lowest level in five years. Nevertheless, as it is unlikely that exploration and production companies will increase their expenses for what Schlumberger has to offer in the foreseeable future, it is necessary to think twice before buying shares. The company itself recognizes its problems in North America but expects an improvement in international markets. If the problem of the commercial war disappears, the situation will improve. Otherwise, the outlook will remain uncertain. The potential solution is to re-evaluate the outlook for the stock after the income reportAll public companies periodically publish a statement of income … More.
For traders
The monthly chart shows that last year, the stock fell below a high level of $ 63 (supportWhat are the "support levels" in the trade? A level of support is a … More line). This year, a $ 50 recovery attempt failed and the priceWhat are valuable stocks? A valuable company is a company that … More slipped below $ 35. As long as it stays below this point, the stock will be vulnerable to a decline in the $ 31 / $ 30 zone.
Shares can be traded as CFDs at XM. XM supports innovation in the field of financial education and offers 300 scholarships to Tradimo members. Click here to find out more.
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