Regions Financial
Regions Financial Corp. (NYSE: RF) stock has dropped by about 9.8% to its value over the past year, including a drop of 12.4% for the year to date. The stock began dropping as soon as the chatter began in early March about Silicon Valley Bank and fell by about 24% by late March. Institutional investors own nearly 80% of the company’s float, and they have been slow to get back in the water following the shark attack on regional banks. A good report Friday morning may get the smart money back in the game.
Of the 27 analysts covering the bank, 15 have a Buy or Strong Buy rating and the others rate the stock at Hold. At a share price of around $18.90, the upside potential to a median price target of $22.00 is 16.4%. At the high price target of $27.50, the upside potential is 45.5%.
Analysts expect Regions to post first-quarter revenue of $1.96 billion, down 2.5% sequentially but 21.7% higher year over year. Adjusted EPS are forecast at $0.64, down 4.8% sequentially and up 16.4% year over year. For the full 2023 fiscal year, Regions is expected to report revenue of $7.78 billion, up 7.2%, and EPS of $2.43, up 2.6%.
The stock trades at 7.8 times expected 2023 EPS, 8.0 times estimated 2024 earnings of $2.37 and 8.7 times estimated 2025 earnings of $2.17 per share. The stock’s 52-week range is $13.94 to $24.33. The bank pays an annual dividend of $0.80 (yield of 4.22%). Total shareholder return for the past year was negative 6.45%.
Schlumberger
The largest U.S.-based oilfield services company, Schlumberger Ltd. (NYSE: SLB), has seen its stock price rise by more than 19% over the past 12 months, hammering rivals Halliburton (down 19.6%) and Baker Hughes (down 19.3%) over the period. Partly that may be due to Schlumberger’s decision not to leave its Russian business, something that both Halliburton and Baker Hughes have done. The company employs around 10,000 people in Russia, and the country delivered about 6% of company profits through the first nine months of 2022. Schlumberger reports quarterly results Friday morning.
Analysts remain solidly bullish. Of 30 brokerages covering the stock, 26 have a Buy or Strong Buy rating. The other four rate the stock at Hold. At a price of around $52.00 a share, the implied upside based on a median price target of $65.00 is about 23.1%. At the high target of $75.00, the upside potential is 44.2%.
First-quarter revenue is forecast at $7.46 billion, down 5.4% sequentially and up 25.2% year over year. Adjusted EPS are forecast at $0.61, down 14.2% sequentially but 79.4% higher year over year. For the full 2023 fiscal year, analysts expect Schlumberger to post EPS of $3.04, up 39.4%, on sales of $32.73 billion, up 16.5%.
Schlumberger shares trade at 17.1 times expected 2023 EPS, 13.7 times estimated 2024 earnings of $3.77 and 11.9 times estimated 2025 earnings of $4.34 per share. The stock’s 52-week range is $30.65 to $62.78. Schlumberger pays an annual dividend of $1.00 (yield of 1.9%). Over the past 12 months, total shareholder return was 20.75%.
Originally published at 24/7 Wall St.
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