Schlumberger
The largest U.S.-based oilfield services company, Schlumberger Ltd. (NYSE: SLB), has seen its stock price rise by more than 30% over the past 12 months. That is well above rivals Halliburton, which sports a gain of around 20%, and Baker Hughes, which has lost about 4% of its value in the past year. Schlumberger reports quarterly results early Friday.
Some 9,000 Schlumberger employees in Russian have received military draft notices. The company is cooperating with the government and refusing to allow its Russian staff to work outside the country.
Analysts remain solidly bullish on the company. Of 30 brokerages covering the stock, 29 have a Buy or Strong Buy rating. The other rates the shares at Hold. At a share price of around $45.20 the implied upside based on a median price target of $50.00 is about 10.6%. At the high target of $61.00, the upside potential is 35%.
Third-quarter revenue is forecast at $7.1 billion, up 4.9% sequentially and by 21.4% year over year. Adjusted EPS are forecast at $0.55, up 10.2% sequentially and 52.8% higher year over year. For the full 2022 fiscal year, analysts expect Schlumberger to post EPS of $2.02, up 57.9%, on sales of $27.27 billion, up almost 19%.
Schlumberger shares trade at about 22.1 times expected 2022 EPS, 15.8 times estimated 2023 earnings of $2.81 and 13.1 times estimated 2024 earnings of $3.40 per share. The stock’s 52-week range is $27.65 to $49.83. Schlumberger pays an annual dividend of $0.70 (yield of 1.66%). Over the past 12 months, total shareholder return was 30.3%.
Verizon
Telecom giant and Dow component Verizon Communications Inc. (NYSE: VZ) has seen its share price fall by more than 28% over the past 12 months. Look for the company to report its quarterly results before the regular session begins on Friday.
The company recently announced a couple of programs designed to attract more prepaid customers, a group Verizon has long ignored. But desperate times call for desperate measures, and Verizon paid $6.6 billion last year to acquire TracFone, the largest U.S. prepaid mobile service provider. Last month, Verizon launched its own branded Total prepaid service targeting consumers with little or no credit history.
Analysts remain wary of Verizon’s new focus. Of 29 analysts, only seven have Buy or Strong Buy ratings, while 21 have Hold ratings. At a share price of around $37.20, the implied gain based on a median price target of $50.00 is 34.4%. At the high price target of $68.00, the potential upside is 82.8%.
Third-quarter revenue is forecast to come in at $33.82 billion, up 0.1% sequentially and by 2.8% year over year. Adjusted EPS are forecast at $1.29, down 1.7% sequentially and 8.5% lower year over year. For the full 2022 fiscal year, analysts anticipate Verizon will post EPS of $5.17, down 4%, on sales of $136.35 billion, about up 2.1%.
Verizon stock trades at about 7.2 times expected 2022 EPS, 7.1 times estimated 2023 earnings of $5.22 and 7.1 times estimated 2024 earnings of $5.21 per share. The stock’s 52-week range is $35.04 to $55.51. Verizon pays an annual dividend of $2.61 (yield of 7.04%). Total shareholder return over the past 12 months was negative 25.08%.
Originally posted at 24/7 Wall St.
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