Trade-Ideas LLC identified

Schlumberger

(

SLB

) as a pre-market laggard 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 $595.2 million.
  • SLB traded 163,894 shares today in the pre-market hours as of 7:55 AM.
  • SLB is down 3.8% today from yesterday's close.

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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 industries worldwide. The company operates through Reservoir Characterization Group, Drilling Group, and Production Group segments. The stock currently has a dividend yield of 2.6%. SLB has a PE ratio of 23. Currently there are 20 analysts that rate Schlumberger a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Recommends

The average volume for Schlumberger has been 7.1 million shares per day over the past 30 days. Schlumberger has a market cap of $98.1 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.13 and a short float of 1.2% with 1.72 days to cover. Shares are down 13.5% 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

buy

. 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. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.22, which illustrates the ability to avoid short-term cash problems.
  • SLB, with its decline in revenue, slightly underperformed the industry average of 22.5%. Since the same quarter one year prior, revenues fell by 25.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for SCHLUMBERGER LTD is currently lower than what is desirable, coming in at 31.54%. Regardless of SLB's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, SLB's net profit margin of 12.47% compares favorably to the industry average.
  • The change in net income from the same quarter one year ago has exceeded that of the Energy Equipment & Services industry average, but is less than that of the S&P 500. The net income has significantly decreased by 29.5% when compared to the same quarter one year ago, falling from $1,595.00 million to $1,124.00 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 27.69%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 35.76% compared to the year-earlier quarter. Looking ahead, the stock's sharp decline over the past year may have been what was needed in order to bring its value into alignment with its fundamentals and others in its industry.

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