SLB Should I Buy
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SLB is not a strong buy at the moment for a beginner investor with a long-term strategy. While the stock has some positive catalysts, the mixed financial performance, neutral technical indicators, and lack of strong proprietary trading signals suggest waiting for a clearer entry point.
The MACD is below 0 and negatively contracting, indicating weak momentum. RSI is neutral at 58.753, and moving averages are converging, suggesting no clear trend. The stock is trading near its R1 resistance level of 48.226, which may act as a short-term ceiling.
SLB's OneSubsea secured a significant multi-well EPC contract with CNOOC, enhancing its deepwater capabilities. Analysts have raised price targets recently, with most maintaining Buy or Outperform ratings. The company has a strong international presence and digital offerings, which position it well for long-term growth.
SLB anticipates a $0.06 to $0.09 impact on Q1 earnings due to disruptions in the Strait of Hormuz. Q4 financials showed declining net income (-24.75% YoY), EPS (-28.57% YoY), and gross margin (-18.89% YoY). Freedom Capital downgraded the stock to Sell, citing valuation concerns and weak global drilling activity.
In Q4 2025, revenue increased 4.97% YoY to $9.745 billion. However, net income dropped 24.75% YoY to $824 million, EPS declined 28.57% YoY to $0.55, and gross margin fell 18.89% YoY to 17.13%.
Analysts are generally positive on SLB, with multiple firms raising price targets (ranging from $49 to $61) and maintaining Buy or Outperform ratings. However, Freedom Capital downgraded the stock to Sell, citing overvaluation and weak fundamentals in the oil market.
