#7 - Schlumberger (NYSE:SLB)
The last stock on this list is also from the energy sector. However, investing in Schlumberger (NYSE:SLB) is a more indirect play. Specifically, Schlumberger provides technology for the energy industry. The company is one of the first companies to report second-quarter earnings and delivered a beat on both the top and bottom lines. That’s becoming a regular occurrence for the company.
And both revenue and earnings are projected to see double-digit growth over the next five years. That should help investors overlook the company’s P/E ratio, which, at around 19x, is slightly elevated for its sector.
The company’s dividend is not particularly impressive. However, as Thomas Hughes analyzed recently for MarketBeat, a little context is necessary. Like many energy companies, Schlumberger cut its dividend significantly at the onset of the pandemic. With energy stocks at the beginning of what is likely to be a multi-year growth cycle, Schlumberger looks to have plenty of room to grow its dividend in the coming years.
About Schlumberger
Schlumberger Limited engages in the provision of technology for the energy industry worldwide. The company operates through four divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems. The company provides field development and hydrocarbon production, carbon management, and integration of adjacent energy systems; reservoir interpretation and data processing services for exploration data; and well construction and production improvement services and products.
Read More - Current Price
- $43.45
- Consensus Rating
- Buy
- Ratings Breakdown
- 18 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $60.97 (40.3% Upside)
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