NEW YORK (TheStreet) -- It's not often that shares of Schlumberger (SLB) , the world's largest oilfield-service company by both revenue and market capitalization, become cheap. But they are now, compared to where they have been, and compared to the average of companies in the S&P 500.
The stock is down 5.1% over the past six months, but Schlumberger's expanding margins, which recently boosted its third-quarter earnings by more than 13% year over year, could propel the stock toward $120, for a 25% gain. Still, investors will need to be patient.
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It's Schlumberger's ability to grow its margins that has the median price target of analysts at $120 in the next 12 to 18 months. And that's still $20 less than the highest analyst target of $140, according to CNN Money.