- Schlumberger has returned 45% compared to -4.3% for the S&P 500 in just over three months since my last report. The question is: can the outperformance continue?
- Schlumberger’s CEO recently offered some color: “conditions are strikingly similar to those experienced during the last industry supercycle”.
- The oil and gas industry is embarking on the first new growth cycle since 2009. This follows a brutal 6-year bear market which culminated in depression-like conditions.
- While oil and gas prices have skyrocketed since my last report, consensus growth estimates for Schlumberger remain unchanged pointing toward material upside surprise potential.
- With a high confidence potential return spectrum of -17% to +114%, Schlumberger continues to offer an asymmetric growth opportunity in a high-quality industry leader.
For further details see:
Schlumberger: An Asymmetric Opportunity With Supercycle Potential