Today's Momo Momentum Stock Is Schlumberger (SLB)

Trade-Ideas LLC identified Schlumberger (SLB) as a momo momentum candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Schlumberger

(

SLB

) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Schlumberger as such a stock due to the following factors:

  • SLB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $412.3 million.
  • SLB has a PE ratio of 62.
  • SLB is currently in the upper 30% of its 1-year range.
  • SLB is in the upper 25% of its 20-day range.
  • SLB is in the upper 35% of its 5-day range.
  • SLB is currently trading above yesterday's high.
  • SLB has experienced a gap between today's open and yesterday's close of 1.4%.

'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.

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More details on SLB:

Schlumberger Limited supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industry worldwide. The stock currently has a dividend yield of 2.5%. SLB has a PE ratio of 62. Currently there are 18 analysts that rate Schlumberger a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for Schlumberger has been 6.7 million shares per day over the past 30 days. Schlumberger has a market cap of $98.6 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.05 and a short float of 1.3% with 3.03 days to cover. Shares are up 11.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Schlumberger as a

hold

. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and premium valuation.

Highlights from the ratings report include:

  • The debt-to-equity ratio is somewhat low, currently at 0.61, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, SLB has a quick ratio of 1.77, which demonstrates the ability of the company to cover short-term liquidity needs.
  • SLB, with its decline in revenue, slightly underperformed the industry average of 35.8%. Since the same quarter one year prior, revenues fell by 36.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The share price of SCHLUMBERGER LTD has not done very well: it is down 7.72% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • SCHLUMBERGER LTD's earnings per share declined by 47.4% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, SCHLUMBERGER LTD reported lower earnings of $1.61 versus $4.30 in the prior year. For the next year, the market is expecting a contraction of 31.4% in earnings ($1.11 versus $1.61).

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