Schlumberger: SLB

We expect Schlumberger (SLB) to continue its strong growth in the long-term. Schlumberger is the largest oilfield services player, with a presence in every energy market across the globe. The company is set to capitalize on growing investments in the Oil & Gas sector's capital expenditures. Investments in the sector are ramping up due to growing oil prices, as the post pandemic global economy recovers. Massive underinvestment in the sector over recent years has contributed to the increased demand for the SLB's cervices.

Several major banks predict oil prices to remain strong throughout the year and reach $90/bbl in the 3Q22. Some even see the oil price this year exceeding $100/bbl. According to Reuters, Arathy Somasekhar, "As oil prices have surged past $80 a barrel, U.S oil and gas producers are paving the way for faster production by expanding new well completions in the Permian Basin of west Texas and New Mexico."

This week, Bank of America analysts forecasted that global spending on drilling and completion will rise 22%, the strongest year-over-year gain since 2006. This indicates that the energy services industry reached a cyclical bottom in 2021 and is entering a multiyear recovery.

Since the beginning of the year, SLB shares gained 19.2%. The company will release earnings results on January 21, before the market opening. SLB exceeded the earnings expectations in the last four quarters, with an average beat of 12%. Currently, SLB has 27 bullish and very bullish (no bearish) ratings from Wall Street analysts.

For more detailed analysis of this company, see this article published by Brian Kapp to Seeking Alpha: Schlumberger: A Top Choice For Cyclical Growth Through 2023.

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