SLB (NYSE:SLB): Evaluating Current Valuation as Long-Term Gains Pause

SLB (SLB) shares have been moving in line with shifts across the broader energy sector recently, prompting investors to take a closer look at the company’s fundamentals. With fluctuating market conditions, SLB’s performance offers some interesting discussion points for those tracking energy stocks.

See our latest analysis for SLB.

SLB’s share price has edged up in recent days, but with a 1-year total shareholder return of -15% the stock is still down notably from last year’s levels. Over the longer run, however, SLB has delivered a solid 71% total shareholder return for investors over five years. This makes recent momentum feel more like a pause rather than a reversal.

If the shifting trends in energy stocks have you thinking about broader opportunities, it could be a smart time to discover fast growing stocks with high insider ownership.

With strong historical gains but a recent slip in returns, the question remains: do current market valuations give SLB room to surprise to the upside, or is the market already accounting for all expected growth?

Most Popular Narrative: 20.1% Undervalued

The most widely followed narrative places SLB's fair value at $45.37, noticeably higher than the last close at $36.24. This gap has investors questioning if the share price truly reflects SLB's earnings potential and future growth plans.

The integration of ChampionX expands SLB's capabilities in production optimization, chemicals, and digital production technology, unlocking new revenue synergies through cross-selling and international expansion. This integration is also expected to drive significant cost synergies ($400 million targeted), which may increase EBITDA margins and earnings per share, particularly in 2026 and beyond.

Read the complete narrative.

Want to know what powers that ambitious price target? The narrative is built around accelerating profit margins and a pivotal business segment transformation. Dive in to uncover which game-changing variable shapes this bullish valuation and what could shake up investor expectations next.

Result: Fair Value of $45.37 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing macro uncertainty and delays in realizing cost synergies from the ChampionX integration could still challenge the positive outlook for SLB.

Find out about the key risks to this SLB narrative.

Build Your Own SLB Narrative

If you think there is more to the story or want to see what your own research uncovers, you can craft your own narrative in just a few minutes. Do it your way.

A great starting point for your SLB research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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