Schlumberger NV (SLB): Energy's Featured Underachiever Of The Day

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 2.4%. By the end of trading, Schlumberger fell $2.32 (-3.2%) to $70.97 on heavy volume. Throughout the day, 10.1 million shares of Schlumberger exchanged hands as compared to its average daily volume of 6.4 million shares. The stock ranged in price between $70.20-$72.39 after having opened the day at $72.39 as compared to the previous trading day's close of $73.29. Other companies within the Energy industry that declined today were: GeoGlobal Resources ( GGR), down 21%, Magnum Hunter Resources Corportion ( MHR), down 14.8%, Gastar Exploration ( GST), down 13%, and Saratoga Resources ( SARA), down 9.4%.
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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 $95.69 billion and is part of the basic materials sector. The company has a P/E ratio of 17.7, equal to the S&P 500 P/E ratio of 17.7. Shares are up 5.8% 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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins.

On the positive front, Andatee China Marine Fuel Services Corporat ( AMCF), up 39.7%, Recovery Energy ( RECV), up 18.6%, GeoPetro Resources Company ( GPR), up 11.1%, and TransAtlantic Petroleum ( TAT), up 5.3%, were all gainers within the energy industry with Newfield Exploration Company ( NFX) 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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