Daily Stock Opinions and Ratings

Opinions

Jim Cramer - Mad MoneySchlumberger Ltd.SLBBUYJan 24, 2024

Last Friday they reported a slight top and bottom line beat with revenue up 14% YOY and free cash flow up 167% YOY. Strength lies in their international business, with 10 straight quarters of double-digit growth. Guidance was encouraging, though they seldom say much, driven by this international business. Also, they raised their dividend 10% and will increase buybacks, which will absorb their higher-than-expected capex.

Jim Cramer - Mad Money

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$51.60

Stock price when the opinion was issued

$48.13

As of Jun 18, 2026. Market Open.

oilgas field services

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BUY

She sold Chevron to buy more SLB, which is the #1 player in oil field services. Traeds at 17x forward PE. They raised guidance three times this year, yet shares haven't moved. Their technology is not appreciation.

DON'T BUY

World's largest oil drilling company. Fundamentally the company scores 6/10. Revenue slowing. Stock price also has a downward trend. Would wait for stock trend to reverse before buying. Company also has cut dividend in the past 10 years. Better options available for investors.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O'Reilly

SLB represents the "pick and shovels" of the energy industry, involved in building infrastructure. Earnings recently beat analyst expectations as US revenues grew despite reduced drilling activity in several key regions. It trades at 18x earnings and supports a 22% ROE. We recommend placing a stop-loss at $47, looking to achieve $63 -- upside potential of 18%. Yield 1.7%

(Analysts’ price target is $63.76)

RISKY

Likes it. It may have bottomed.

DON'T BUY

International service business very volatile. Require strong energy prices for service sector to recover. Would prefer Canadian heavy oil producers.

PARTIAL BUY

Reported a super quarter. Would buy some now, then more a little lower.

BUY ON WEAKNESS

Delivered a mixed Q3, but earnings were excellent with revenues up double digits. Today's sell-off is a buy. They've been increasing their dividend a lot in recent years, nearly 2%. They benefit from the exploration, more than the price, of oil, and they are digging now.

BUY

She just bought more after the report: beat on EBITDA and earnings as margins grew. 14 of 25 global geographies grew 20%; 7 grew 30%. Free cash flow is strong.

BUY

Are introducing AI into the oil space. A tailwind. A consolidation would take it to the next leg.

BUY ON WEAKNESS

She added more recently. She keeps buying it on sloppy days. Impressed with their digital initiatives which gives them pricing power. Their international revenues are rising.

BUY

Likes their international exposure which offers stickier income. Has been outperforming peers though trades at a premium to Halliburton.

DON'T BUY

This and Haliburton are great companies but have bad long term track records. In 25 years they have created no value for shareholders.

BUY

She just added to her shares. Good free cash flow in energy stocks as capex declines. SLB beat earnings and revenues last quarter. Their digital and integation margins were up 380 basis points sequentially. Yes, the stock isn't cheap, but it enjoys the best momentum and international activity.

TOP PICK

Believes is a high quality company. Services will be required as energy demand grows. Strong management and excellent financial returns. Solid balance sheet going forward.

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