10 Best Undervalued Energy Stocks To Buy According to Hedge Funds

4. Schlumberger Limited (NYSE:SLB)

Number of Hedge Fund Investors: 65

Forward P/E Ratio as of December 16: 11.21

Schlumberger Limited (NYSE:SLB) is a global leader in oilfield services, providing technology and solutions for reservoir characterization, drilling, and production. The company’s clients include major oil and gas producers worldwide. Schlumberger Limited (NYSE:SLB) generates revenue by offering cutting-edge technologies and integrated solutions that enhance exploration and production efficiency. The company is also expanding into the energy transition space, focusing on geothermal, carbon capture, and digital transformation.

Schlumberger Limited (NYSE:SLB) is at the forefront of digital innovation, leveraging its digital platform to offer advanced solutions. The company’s Digital & Integration segment is a key differentiator in the industry. Schlumberger Limited (NYSE:SLB) partners with independent software developers to provide data analytics for operational analysis and over 150 engineered AI solutions, including the DELFI and LUMI platforms. These digital solutions are designed to catalyze future growth by optimizing operations and enhancing efficiency. The total addressable market for these digital solutions is expanding rapidly, which further highlights the immense potential of these solutions.

Schlumberger Limited (NYSE:SLB) has been strategic with its acquisitions, aiming to optimize various phases of the oil and gas operations cycle. The pending acquisition of ChampionX (CHX) is on track to be finalized by Q1 2025. This deal brings geographic synergies by integrating ChampionX’s production-focused expertise in North America with Schlumberger Limited’s (NYSE:SLB) extensive global footprint. Additionally, the acquisition enhances Schlumberger Limited’s (NYSE:SLB) capabilities in production optimization and extends the lifespan of equipment, driving higher margins through lower maintenance expenses and quicker service delivery.