SLB Should I Buy
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SLB is not a strong buy at this moment for a beginner investor with a long-term strategy. While there are positive catalysts like recent contracts and partnerships, the financial performance shows declining profitability, and technical indicators are mixed. The lack of strong trading signals and neutral sentiment from hedge funds and insiders further supports a hold recommendation.
The technical indicators present a mixed picture. While the moving averages are bullish (SMA_5 > SMA_20 > SMA_200), the MACD histogram is negative and expanding downward, suggesting bearish momentum. RSI is neutral at 57.541, and the stock is trading near its resistance level (R1: 52.139).
SLB secured a $1.5 billion contract with Kuwait Oil Company and partnered with Star Energy Geothermal for a significant project in Indonesia. Analysts have raised price targets, citing potential growth in international markets and digital offerings.
The company's Q4 financials showed declining profitability, with net income down 24.75% YoY and EPS down 28.57%. Freedom Capital downgraded the stock, citing weak global drilling activity and overvaluation. The MACD indicator also suggests bearish momentum.
In Q4 2025, revenue increased by 4.97% YoY to $9.745 billion. However, net income dropped by 24.75% YoY to $824 million, and EPS fell by 28.57%. Gross margin also declined by 18.89% to 17.13%.
Analysts are mostly positive, with several firms raising price targets (e.g., Jefferies to $58, UBS to $61, JPMorgan to $54). However, Freedom Capital downgraded the stock to Sell, citing weak fundamentals and overvaluation. The consensus leans toward a Buy, but there are mixed views on valuation and near-term growth.
