Schlumberger NV (SLB): Today's Featured Energy Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Schlumberger ( SLB) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day down 0.6%. By the end of trading, Schlumberger fell $1.24 (-1.8%) to $67.83 on average volume. Throughout the day, eight million shares of Schlumberger exchanged hands as compared to its average daily volume of 5.9 million shares. The stock ranged in price between $67.62-$69.47 after having opened the day at $69.30 as compared to the previous trading day's close of $69.07. Other companies within the Energy industry that declined today were: Isramco ( ISRL), down 18.4%, Cubic Energy ( QBC), down 14.8%, GeoPetro Resources Company ( GPR), down 11.4%, and Goodrich Petroleum ( GDP), down 11.1%.
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Schlumberger Limited, together with its subsidiaries, supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. Schlumberger has a market cap of $90.91 billion and is part of the basic materials sector. The company has a P/E ratio of 16.6, below the S&P 500 P/E ratio of 17.7. Shares are up 0.2% year to date as of the close of trading on Tuesday. Currently there are 24 analysts that rate Schlumberger a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates Schlumberger as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Emerald Oil ( EOX), up 240.3%, Royale Energy ( ROYL), up 21.4%, Geokinetics ( GOK), up 15.6%, and BMB Munai ( BMBM), up 12%, were all gainers within the energy industry with Cheniere Energy ( LNG) being today's featured energy industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the energy industry could consider Energy Select Sector SPDR ( XLE) while those bearish on the energy industry could consider Proshares Short Oil & Gas ( DDG).

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