Top 10 Oil and Gas Stocks To Buy According to Analysts

5. Schlumberger Limited. (NYSE:SLB)

Average Analyst Price Target: $60.97

Upside Potential: 39.90%

Number of Hedge Fund Holders as of Q3: 65

Schlumberger Limited (NYSE:SLB) is a global leader in energy technology, operating across four core divisions: Digital & Integration, Reservoir Performance, Well Construction, and Production Systems.

In its third-quarter earnings report, Schlumberger Limited (NYSE:SLB) posted revenues of $9.2 billion, with an adjusted EBITDA margin of 25.6%. Growth in the Digital & Integration division, fueled by strong digital sales, offset a revenue dip in the Well Construction segment. The company also reinforced its commitment to shareholder value by repurchasing over $500 million in shares during the quarter. Additionally, the planned sale of the Palliser property in Canada is expected to accelerate SLB’s financial targets, with projections now exceeding $3 billion in returns for 2024 and $4 billion for 2025.

That said, Goldman Sachs maintained its Conviction Buy rating on Schlumberger Limited (NYSE:SLB) in October, with a price target of $52, highlighting the stock’s recent underperformance as a strategic entry point given its strong free cash flow generation and capital return potential. Meanwhile, Barclays adjusted its price target from $63 to $61, maintaining an Overweight rating. This adjustment reflects SLB’s above mentioned decision to divest the Palliser APS project and challenges from reduced customer activity amid lower oil prices and broader economic pressures.