This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Morgan Stanley's 8 Best Stock Ideas for 2011

1. Schlumberger (SLB) is an oilfield-services company, selling supply technology, project management and information services.

Fundamentals: Schlumberger's 12-month sales inched up 1.2%. Third-quarter profit more than doubled to $1.7 billion, or $1.38 a share, as revenue gained 26% to $6.8 billion. Adjusted profit gained a more modest 7% sequentially and 11% year-over-year. The operating margin fell from 18% to 16%. Schlumberger held $2.6 billion of cash and $6.7 billion of debt at quarter's end, translating to a quick ratio of 1.1 and a debt-to-equity ratio of 0.2.

Valuation: Schlumberger's stock sells for a forward earnings multiple of 22, a 9% discount to the energy equipment and services industry average. Its book value multiple of 3.7, sales multiple of 4.7 and cash flow multiple of 21 reflect premiums of 25%, 52% and 13% to energy peer averages. Although seemingly expensive, Morgan Stanley has a bullish-scenario target of $180 for Schlumberger, corresponding to 57% upside. Its bearish-scenario target is $50.

-- Written by Jake Lynch in Boston.

To see these stocks in action, visit the Morgan Stanley's 8 Best Stock Ideas Portfolio on Stockpickr.


Become a fan of TheStreet on Facebook.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
8 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $130.28 0.00%
BWA $60.79 0.00%
SNI $69.91 0.00%
TYC $40.04 0.00%
UNP $107.51 0.00%


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs