10 Best Stocks to Buy Before Spring

7. Schlumberger Limited (NYSE:SLB)

Number of Hedge Fund Holders: 80

Schlumberger Limited (NYSE:SLB) is a global energy technology leader with four main divisions: digital and integration, reservoir performance, well construction, and production systems.

Schlumberger Limited’s (NYSE:SLB) revenues increased by 10% year-over-year in fiscal 2024, while adjusted EBITDA increased by 12%, resulting in $3.99 billion in FCF and a $571 million reduction in net debt. Following these results, Stifel analysts reaffirmed their Buy rating and price target of $59 for SLB shares, noting the company’s financial strength and potential to reward shareholders through share buybacks and dividend payouts.

SLB’s commitment to shareholder returns remains unwavering, as indicated by its goal of returning at least $4.0 billion to shareholders in 2025, following a payout of $3.3 billion in 2024. This goal is backed by the funds from Palliser’s sale and the company’s careful expenditure strategy.

ClearBridge Value Strategy stated the following regarding Schlumberger Limited (NYSE:SLB) in its Q4 2024 investor letter:

“Our largest sell was Baker Hughes, which we made to fund our new position in oilfield service provider peer Schlumberger Limited (NYSE:SLB). While we acknowledge that Baker Hughes has stronger near-term tailwinds, its strong performance has resulted in a historically wide valuation gap to Schlumberger. Schlumberger has similar exposure to the oil and gas industry, but also has an improving portfolio of assets and greater digital initiatives that we believe will lead it to outperform Baker Hughes over the long run.”