SLB Stock Plummets 30% YTD: Should You Hold or Exit the Investment?

Zacks12-19

Year to date (YTD), SLB SLB has experienced a 29.9% decline, significantly underperforming the industry’s overall fall of 8.6%. The reduced demand for SLB's products and services due to a slowdown in ...

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The reduced demand for SLB's products and services due to a slowdown in ...</p>\n\n<a href=\"https://finance.yahoo.com/news/slb-stock-plummets-30-ytd-144800959.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>SLB Stock Plummets 30% YTD: Should You Hold or Exit the Investment?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSLB Stock Plummets 30% YTD: Should You Hold or Exit the Investment?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-19 22:48 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/slb-stock-plummets-30-ytd-144800959.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Year to date (YTD), SLB SLB has experienced a 29.9% decline, significantly underperforming the industry’s overall fall of 8.6%. The reduced demand for SLB's products and services due to a slowdown in ...</p>\n\n<a href=\"https://finance.yahoo.com/news/slb-stock-plummets-30-ytd-144800959.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4588","symbol_name":"碎股","start_time":0,"source_url":"https://finance.yahoo.com/news/slb-stock-plummets-30-ytd-144800959.html","article_id":"2492387105","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/ZDr3upka2TkxhA7sfmX.Dw--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/a4cef322b4244c64f8adf4e0acb07e4c"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492387105","pubTimestamp":1734619680,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"So, what should investors’ approach to the stock be?Before addressing this, let’s examine some fundamental aspects of this energy major.Global Drilling Slowdown: Testing SLB’s Resilience. In its latest worldwide rig count report, Baker Hughes Company BKR revealed the North American rig count of 789 for November, significantly lower than 816 rigs recorded in the same month of 2023. This decrease suggests that exploration and production companies have been reducing their capital expenditure budgets for drilling activities. The shift is primarily due to the growing pressure from shareholders, who are prioritizing capital returns over additional investments in exploration and production.The report also indicated that the international rig count for November was 919, marking a notable decline from the 978 rigs recorded a year ago. Thus, it is evident that there has been a global slowdown in drilling activities, hurting demand for SLB’s services from upstream players.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4588":"碎股","LU0251142724.SGD":"Fidelity America A-SGD","LU1489326972.SGD":"First Eagle Amundi International AHS-MD SGD-H","LU0011850046.USD":"贝莱德全球长线股票 A2 USD","LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD","BK4179":"石油天然气设备与服务","LU0072463663.USD":"Blackrock Latin American A2 USD","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","LU0154245756.USD":"BNP PARIBAS US MID CAP \"C\" (USD) ACC","LU0368265418.SGD":"Blackrock World Energy Fund A2 SGD-H","LU0154245673.USD":"BNP PARIBAS US MID CAP \"C\" (USD) INC","SG9999004303.SGD":"Nikko AM Shenton Global Opportunities SGD","IE0002270589.USD":"LEGG MASON CLEARBRIDGE VALUE \"A\" (USD) INC","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","LU0788109048.HKD":"BGF LATIN AMERICAN \"A2\" (HKDHGD) ACC","SGXZ23171101.USD":"NIKKO AM SHENTON GLOBAL OPPORTUNITIES (USD) ACC","LU1548497426.USD":"安联环球人工智能AT Acc","PBR":"巴西石油公司","BK4548":"巴美列捷福持仓","LU0300736062.USD":"FRANKLIN NATURAL RESOURCES \"A\" (USD) ACC","LU0122376428.USD":"贝莱德世界能源基金A2","BKR":"贝克休斯","BK4585":"ETF&股票定投概念","LU1051769294.HKD":"BGF EMERGING MARKETS EQUITY INCOME \"A6\"(HKDHDG) INC","BK4201":"综合性石油与天然气企业","LU0211331839.USD":"FRANKLIN MUTUAL GLB DISCOVERY \"A\" (USD) ACC","LU0433182093.SGD":"First Eagle Amundi International AS-C SGD","LU1917777945.USD":"安联专题基金Cl AT Acc","IE00B7SZLL34.SGD":"Legg Mason ClearBridge - Value A Acc SGD-H","LU1974910355.USD":"Allianz Thematica Cl AMg DIS USD","LU1515016050.SGD":"Blackrock Emerging Markets Equity Income A6 SGD-H","LU0251131958.USD":"FIDELITY AMERICA \"A\" (USD) ACC","IE00B1B80R65.USD":"柏瑞拉丁美洲股票A","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","LU0068578508.USD":"First Eagle Amundi International Cl AU-C USD","LU0048573561.USD":"FIDELITY AMERICA \"A\" (USD) INC","IE00B0JY6N72.USD":"PINEBRIDGE GLOBAL EMERGING MARKETS FOCUS EQUITY \"A\" (USD) ACC","LU2106854487.HKD":"ALLIANZ THEMATICA \"AMG\" (HKD) INC","LU0256859116.SGD":"施罗德拉丁美洲A Acc SGD","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","LU0106259046.USD":"施罗德拉丁美洲基金","LU2023250504.SGD":"Allianz Thematica Cl AMg DIS H2-SGD","LU0300736492.USD":"FRANKLIN NATURAL RESOURCES \"A\" (USD) INC","LU2023250843.SGD":"Allianz Thematica Cl AT Acc H2-SGD","LU1261432733.SGD":"Fidelity World A-ACC-SGD","LU0572108347.SGD":"Blackrock Latin American A2 SGD-H","SLB":"斯伦贝谢","LU2237438978.USD":"Amundi Funds US Pioneer A2 (C) USD"},"translate_title":"SLB股价年初至今暴跌30%：您应该持有还是退出投资？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SLB":1,"BKR":1,"PBR":0.9},"content_text":"Year to date (YTD), SLB SLB has experienced a 29.9% decline, significantly underperforming the industry’s overall fall of 8.6%. The reduced demand for SLB's products and services due to a slowdown in both North American and international drilling activities has adversely impacted its offerings, such as well placement optimization and drilling efficiency solutions. These are some of the key reasons for the company’s underperformance in the stock market.\nYTD Price Chart\n Image Source: Zacks Investment Research\nSo, what should investors’ approach to the stock be? Before addressing this, let’s examine some fundamental aspects of this energy major.\nGlobal Drilling Slowdown: Testing SLB’s Resilience\nIn its latest worldwide rig count report, Baker Hughes Company BKR revealed the North American rig count of 789 for November, significantly lower than 816 rigs recorded in the same month of 2023. This decrease suggests that exploration and production companies have been reducing their capital expenditure budgets for drilling activities. The shift is primarily due to the growing pressure from shareholders, who are prioritizing capital returns over additional investments in exploration and production.  \nThe report also indicated that the international rig count for November was 919, marking a notable decline from the 978 rigs recorded a year ago. Thus, it is evident that there has been a global slowdown in drilling activities, hurting demand for SLB’s services from upstream players.\n Image Source: Baker Hughes Company\nAlso, the U.S. Energy Information Administration's latest short-term energy outlook projects U.S. crude oil production to reach 13.5 million barrels per day (MMB/D) in 2025, up from an estimated 13.2 MMB/D in 2024 and 12.9 MMB/D in 2023. However, the year-over-year growth rate is expected to remain steady at 2.3% in 2025, mirroring the growth seen in 2024. This indicates that drilling activities in North America are unlikely to see a significant uptick next year, further confirming that there will likely be subdued demand for services from major oilfield service provider SLB.\nNevertheless, there is no need for concern, as SLB has shown significant progress in expanding its presence in offshore and international markets, which remains a cornerstone of its growth strategy.\nOffshore & International Focus: SLB’s Strategy\nSLB recently secured a contract from Petrobras PBR to provide integrated services across all offshore fields operated by PBR in Brazil. This contract encompasses more than 100 wells in ultra-deepwater rigs, showcasing SLB's advanced capabilities in drilling, cementing and fluid technologies. Read more: Petrobras Awards Major Offshore Contract to SLB Worth $800 Million.\nAnother notable achievement was the award of two subsea raw water injection systems (RWI) for the Búzios field. These systems will enhance production efficiency, reduce greenhouse gas emissions and improve field development economics.\nTime to Keep an Eye on SLB?\nSLB's positive developments also include its efforts to integrate low-emission technologies, such as subsea raw water injection systems, which help reduce the carbon footprint of offshore operations. Innovations like artificial intelligence (AI)-driven drilling systems contribute to minimizing operational emissions while maximizing resource recovery.\nHowever, there are certain uncertainties surrounding the stock. Since SLB offers oilfield services to exploration and production companies, its business is highly sensitive to fluctuations in oil and natural gas prices. Additionally, expanding the scalability of new technologies like Neuro™ geosteering across various markets could create operational challenges.\nDespite these hurdles, which partly led to the YTD stock price decline, most analysts are optimistic that the Zacks Rank #3 (Hold) energy giant will achieve industry-leading margins, supported by its unique operational footprint and advanced technical and digital capabilities. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nNevertheless, investors may want to await a more favorable entry point. This is because, at this moment, the company’s shares are somewhat expensive on a relative basis, with the current 7.02X trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization trading at a premium to the broader industry average of 6.42X.\n Image Source: Zacks Investment Research\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nSchlumberger Limited (SLB) : Free Stock Analysis Report\nPetroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report\nBaker Hughes Company (BKR) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492387105"}