12 Most Promising Energy Stocks According to Analysts

8) Schlumberger Limited (NYSE:SLB)

Average Upside Potential: 27.8%

Number of Hedge Fund Holders: 65

Schlumberger Limited (NYSE:SLB) is engaged in the provision of technology for the energy industry. Citi upped the company’s price target to $54 from $50, keeping a “Buy” rating on its shares after it reported strong earnings and an even better 2025 update. The firm believes that Schlumberger Limited (NYSE:SLB) makes the case for flat revenue and EBITDA in 2025, despite a sizable asset sale and numerous market headwinds. Citi raised its EBITDA forecast, including ChampionX, to $9.59 billion in 2025, or $9.79 billion including other income.

In FY 2024, Schlumberger Limited (NYSE:SLB)’s revenue increased by 10% YoY and adjusted EBITDA went up by 12% YoY, while generating $3.99 billion in FCF, allowing it to return $3.27 billion to shareholders and reduce net debt by $571 million. The company opines that long-term fundamentals are expected to support oil and gas investment. While upstream investment growth is expected to remain subdued in the short term as a result of global oversupply, Schlumberger Limited (NYSE:SLB) anticipates that the oil supply imbalance will gradually abate.

Also, global economic growth and a significant focus on energy security, together with higher energy demand from AI and data centers will aid the investment outlook for the oil and gas industry during the rest of the decade. ClearBridge Investments, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“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.”