1. Schlumberger Limited (NYSE:SLB)
Number of Hedge Fund Holders: 80
Schlumberger Limited (NYSE:SLB) is a global leader in energy technology, providing services and solutions for oil and gas exploration, drilling, production, and reservoir management. The company serves major energy producers with advanced technology, digital solutions, and engineering expertise. While traditionally focused on hydrocarbons, SLB has expanded into sustainable energy, including water management solutions for industrial and oilfield applications. Its water-related services include wastewater treatment, desalination, and water recycling, helping industries optimize resource use and minimize environmental impact.
Schlumberger Limited (NYSE:SLB) concluded 2024 with solid earnings and free cash flow, maintaining cycle-high margins despite moderating upstream investment growth. The company achieved its full year adjusted EBITDA margin target of 25%, generated robust free cash flow of $4 billion, and returned $3.3 billion to shareholders. Digital revenue grew significantly by 20% for the full year, exceeding the company’s high-teens growth targets. The company’s revenue from low-carbon markets and data center infrastructure solutions exceeded $850 million in 2024, with expectations for significant increases in 2025.
Looking ahead to 2025, Schlumberger Limited (NYSE:SLB) expects global upstream investment to remain steady compared to 2024, with deceleration in some resource plays being offset by resilient growth across select countries and customers. The company announced an increased dividend and accelerated share repurchase program, demonstrating confidence in its financial performance. SLB’s diverse portfolio across global operating areas, business lines, and exposure to both short- and long-cycle projects provides resilience against regional and market fluctuations.
Overall, Schlumberger Limited (NYSE:SLB) ranks first on our list of the 10 best water stocks to buy according to hedge funds. While we acknowledge the potential of SLB as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SLB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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