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 0.9%. By the end of trading, Schlumberger rose $1.57 (2.1%) to $77.90 on light volume. Throughout the day, 4.8 million shares of Schlumberger exchanged hands as compared to its average daily volume of 6.6 million shares. The stock ranged in a price between $75.98-$78.18 after having opened the day at $76.21 as compared to the previous trading day's close of $76.33. Other companies within the Basic Materials sector that increased today were: Sinopec Shanghai Petrochemical Company Limi ( SHI), up 11.7%, Endeavour International ( END), up 11.5%, North American Palladium ( PAL), up 11.3%, and US Silica Holdings ( SLCA), up 10.9%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Schlumberger Limited, together with its subsidiaries, engages in the supply of technology, integrated project management, and information solutions to oil and gas exploration and production industries worldwide. Schlumberger has a market cap of $100.72 billion and is part of the energy industry. The company has a P/E ratio of 18.7, above the S&P 500 P/E ratio of 17.7. Shares are up 9.4% year to date as of the close of trading on Tuesday. Currently there are 23 analysts that rate Schlumberger a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Schlumberger as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including relatively poor performance when compared with the S&P 500 during the past year and poor profit margins.

On the negative front, Houston American Energy Corporation ( HUSA), down 10%, Global Geophysical Services ( GGS), down 8.1%, Silvercorp Metals ( SVM), down 7.9%, and HyperDynamics Corporation ( HDY), down 7.3%, were all laggards within the basic materials sector with Goldcorp ( GG) being today's basic materials sector laggard.

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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.

null

More from Markets

Dow Rises for First Time in 9 Days, Oil Soars as OPEC Agrees to Boost Output

Dow Rises for First Time in 9 Days, Oil Soars as OPEC Agrees to Boost Output

Amazon's Big Weakness in the Supreme Court Sales Tax Ruling

Amazon's Big Weakness in the Supreme Court Sales Tax Ruling

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

Tesla's Automotive Gross Margins May Be Overstated, Analysts Suggest

Tesla's Automotive Gross Margins May Be Overstated, Analysts Suggest

OPEC Deal Doesn't Boost Production Enough to Drive Down Crude, Gasoline Prices

OPEC Deal Doesn't Boost Production Enough to Drive Down Crude, Gasoline Prices