Schlumberger NV (SLB): Today's Featured Basic Materials Winner

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 Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day up 1.5%. By the end of trading, Schlumberger rose 97 cents (1.4%) to $71.18 on light volume. Throughout the day, 1.6 million shares of Schlumberger exchanged hands as compared to its average daily volume of 6.1 million shares. The stock ranged in a price between $70.29-$71.21 after having opened the day at $70.76 as compared to the previous trading day's close of $70.21. Other companies within the Basic Materials sector that increased today were: GeoGlobal Resources ( GGR), up 60.6%, Molycorp ( MCP), up 19.2%, Richmont Mines ( RIC), up 15.3%, and China Shen Zhou Mining & Resources ( SHZ), up 13.9%.
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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 $93.21 billion and is part of the energy industry. The company has a P/E ratio of 17, below the S&P 500 P/E ratio of 17.7. Shares are up 2.8% year to date as of the close of trading on Wednesday. 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.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

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