Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the world's biggest oilfield service provider Schlumberger (NYSE: SLB) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.
With that in mind, let's take a closer look at Schlumberger's business and see what CAPS investors are saying about the stock right now.
Schlumberger facts
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Headquarters (Founded)
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Houston, Texas (1927)
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Market Cap
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$78.6 billion
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Industry
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Oil and Gas Equipment and Services
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TTM Revenue
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$25.2 billion
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Management
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CEO Andrew Gould (since 2003)
CFO Simon Ayat (since 2007)
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Return on Capital (average last three years)
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20.4%
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Competitors
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Halliburton (NYSE: HAL),
Baker Hughes (NYSE: BHI)
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CAPS members bullish on SLB also bullish on
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Transocean (NYSE: RIG),
Vale (NYSE: RIO)
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CAPS members bearish on SLB also bearish on
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Exxon Mobil (NYSE: XOM),
Chevron (NYSE: CVX)
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Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, fully 459 of the 479 All-Star members who have rated Schlumberger -- some 96% -- believe the stock will outperform the S&P 500 going forward. These bulls include saunafool and DemonDoug, both of whom are ranked in the top 5% of our community.
Last month, saunafool wrote that at "this point, the oil & gas services sector is beaten into the ground, just because oil has fallen to $90/bbl. It would have to fall to $40/bbl before these folks see even the slightest slowdown in activity."
A pitch from DemonDoug just a day earlier shares that bullish attitude, highlighting Schlumberger's beaten-down price as a bargain opportunity:
I firmly believe that oil and materials have bottom in 9/08, and this is the time to go long on good solid companies that will benefit from a weak dollar policy with too many dollars chasing too few hard assets. SLB has a long history of good quality service and is respected globally for their quality, thumbs up.
What do you think about Schlumberger, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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