10 Best Oilfield Services Stocks to Buy Now

5. Schlumberger Limited. (NYSE:SLB)

Hedge Funds Holding Stakes: 67

Stock Upside Potential as of 12/08/2024: 51.55%

Given its role in providing oil and gas equipment and services, Schlumberger Limited (NYSE:SLB) is one of the best oilfield services stocks to buy now. With a market cap of about $65 billion, it is one of the most prominent players specializing in providing field development and hydrocarbon production. It also offers oil field services, including drilling, completion, and production solutions to upstream oil & gas companies in the U.S.

While Schlumberger Limited (NYSE:SLB) is down by about 17% for the year, it has rallied by more than 120% since 2021, outperforming the 45% gain of the S&P 500. It also rewards investors with a 2.52% dividend yield, which is ideal for generating passive income.

The fact that Schlumberger Limited (NYSE:SLB) has consistently beaten the S&P 500 affirms why it is one of the best oilfield service stocks to buy now. Its international and offshore segments outperform due to long-cycle development and capacity expansion projects. Oil supply cuts amid high demand should build a more supportive environment for higher oil prices, supporting the company’s prospects in the sector.

As of the end of the second quarter, 67 hedge funds tracked by Insider Monkey Database held stakes in the company. Schlumberger Limited (NYSE:SLB) is currently rated as a Buy with a $66 consensus price target, implying 51.55% upside potential from current levels.

In its fourth quarter 2023 investor letter, Artisan Value Fund said the following about Schlumberger Limited (NYSE:SLB):

“On the downside in Q4, our two energy holdings, Schlumberger Limited (NYSE:SLB), the world’s largest oil services company, and EOG Resources, a US shale-focused E&P company, were weak along with the broader sector. We have stringent criteria for business quality, which is particularly important in commodities sectors as these businesses do not control the underlying commodity prices, which can be volatile. We expect Schlumberger to continue to successfully navigate market volatility and deliver on its free cash flow and profit margin growth objectives from combination of activity growth and pricing gains. The stock has been among our top contributors since we initiated our position in December 2020.”