Should I buy Schlumberger stock in 2025? A Complete ZA Investor Guide

What is Schlumberger?

How much is the Schlumberger stock?

The price of Schlumberger stock is rising this week. As of now, Schlumberger is trading at $33.68, up +$0.10 (0.30%) over the last 24 hours, though down -0.21% across the week. With a market capitalization of $45.67 billion, average daily volume over the past three months stands at 17.73 million shares. The current P/E Ratio is 11.39, the dividend yield is 3.38%, and the stock beta is 1.07.

While recent performance shows some volatility, the company maintains solid fundamentals and attractive yield—key considerations for South African investors navigating global energy markets.

Our full analysis on the Schlumberger stock

Having carefully analysed Schlumberger’s most recent financial disclosures alongside its three-year stock trajectory, and having consolidated multi-source perspectives—spanning key market metrics, technical signals, sector intelligence, and peer benchmarking—through our proprietary quantitative models, we present an expert insight into this global leader in oilfield technology and services. In today’s evolving energy environment, questions naturally arise: why might Schlumberger once again represent a strategic entry point for investors seeking resilient, growth-oriented exposure to the energy technology sector as we move into 2025?

Recent Performance and Market Context

Schlumberger (NYSE: SLB) has experienced significant price fluctuations over the past twelve months, with the stock now trading at $33.68 as of 29 May 2025—a level representing a decline of -26.21% year-on-year and -23.35% over six months. However, this pullback from the 52-week high ($50.94) positions the stock near its lower 12-month range ($31.11), potentially representing a value inflection zone for agile investors.

Recent company developments paint a picture of momentum beyond these headline figures. Strategic expansion, notably the $8 billion ChampionX acquisition expected to close before Q4 2025, augments Schlumberger’s portfolio with advanced chemistry and digital solutions, reinforcing its role as an integrated energy technology leader. Moreover, partnerships such as the joint venture with ADNOC Drilling in Kuwait and Oman further diversify revenue by expanding Middle East operations, traditionally a region of robust upstream spending.

The sectoral backdrop is equally promising. Despite cyclical headwinds in international oilfield capex and temporary softness in North American upstream activity, a stabilising oil price environment supports renewed project sanctioning. Importantly, international rig counts and global upstream investment are showing signs of a gradual, but sustained, recovery. This macro context aligns well with the recurring global push for energy security, with digitalisation and decarbonisation acting as secular drivers for service companies like Schlumberger.

Technical Analysis

From a technical analysis perspective, Schlumberger exhibits attributes that suggest a potential bullish reversal is emerging. While the stock remains below all major moving averages—5-day ($33.76), 20-day ($34.47), 50-day ($36.20), 100-day ($38.46), 200-day ($40.07)—several pivotal indicators present constructive signals:

• Relative Strength Index (RSI, 14 days): At 40.30, moving out of oversold territory, often marking the early stages of a trend reversal.
• MACD: At -0.49, the indicator is issuing a buy signal, hinting that downside momentum may be waning.
• Williams %R: Deep oversold at -87.27, another historical precursor to price rebounds in SLB.
• Key Support Level: $33.21 (Pivot S2) is holding firm, offering a logical stop zone for entry strategies. The first resistance level at $34.20 (Pivot R1) provides a near-term upside target.

Furthermore, momentum oscillators and pattern studies indicate that, while immediate sentiment remains guarded, historical precedents show that such deeply discounted phases in Schlumberger have frequently preceded robust multi-quarter advances—especially with anticipated macro and company-specific catalysts.

Fundamental Analysis

On core fundamentals, Schlumberger retains formidable strengths relative to sector peers and broader industrials.

• Growth and Profitability: Q1 2025 revenue of $8.49 billion reflected only a moderate (-3% YoY) cyclical adjustment. Adjusted EBITDA of $2.02 billion demonstrates impressive operational resilience, and the company continues to generate healthy free cash flow, supporting both dividend stability and strategic investments.
• Valuation: At a P/E of 11.39 and a forward P/E of 10.36, SLB trades significantly below long-term sector averages and below its own multi-year historical range, suggesting valuation multiples are currently anchored at recession-like levels. Price-to-book of 2.32 is attractive given the company’s quality of earnings and asset base.
• Dividend Policy: A robust, uninterrupted quarterly dividend (current yield: 3.38%) has been a hallmark since 1957, underscoring management’s commitment to returning capital to shareholders. The latest programme—over $4 billion in total returns targeted for 2025—sets SLB apart as a stable generator of shareholder yield even through cycles.
• Market Leadership and Innovation: As the world’s largest oilfield technology and services company—with deep entrenchment in AI, digital solutions, and new energy verticals (geothermal, CCUS, data centre infrastructure)—Schlumberger positions itself not only for the fossil-fuel transition but as an innovation leader in the new energy paradigm.
• Strategic Expansion: The ChampionX transaction extends beyond conventional oil & gas, unlocking synergy in chemicals, production automation, and high-margin services relevant to data infrastructure and energy transition projects globally.

In sum, even amid a transitory earnings slowdown, the company’s balanced approach—operational discipline, technological leadership, strategic M&A, and elevated shareholder returns—justifies renewed investor interest.

Volume and Liquidity

Market confidence in SLB remains robust, as evidenced by a sustained average daily trading volume of around 17.73 million shares and a sizeable market float. This considerable liquidity is a testament to institutional faith in the company’s business model, facilitating dynamic valuation adjustments and enabling efficient execution for market participants of all sizes.

Such liquidity—supported by significant institutional holdings—helps anchor the stock’s volatility and ensures ample investor participation around pivotal technical and fundamental news catalysts. In the current environment, a liquid stock near cyclical lows often primes itself for swift and material re-ratings upon positive developments.

Catalysts and Positive Outlook

Several powerful forward-looking catalysts converge to favour a positive SLB thesis:

• Closure of the ChampionX Acquisition: This will create the most comprehensive integrated solutions provider in the global energy services sector, unlocking meaningful scale and operational synergies.
• Digital and Artificial Intelligence Growth: Q1 digital revenue grew by 17%, outpacing the core business—a clear indicator of secular demand from energy transition and digitalisation strategies among clients.
• Major International Contracts: New JV structures in the Middle East, as well as expanded activity in Latin America and Norway, will underpin geographical revenue diversity and buffer the company from regional slowdowns.
• Technologies for Energy Transition: Rapid growth in geothermal projects, carbon management (CCUS), and tailored solutions for energy-efficient data centres position SLB to capture value from global ESG and decarbonisation mandates.
• Resilient Cash Returns: A commitment to minimum $4 billion returns in 2025, representing more than 50% of projected free cash flow (a rare feat among cyclical industrials), further elevates the investment proposition.

Sectorally, as upstream spending normalises and digital energy solutions receive regulatory and client-driven tailwinds, companies like SLB look primed to outperform. The consensus analyst one-year price target currently anchors upside at +41% ($47.50)—a compelling risk/reward setup, especially at current valuation lows.

Investment Strategies

In the context of today’s market conditions, Schlumberger may present a multi-horizon opportunity:

• Short-term: For traders, positioning near strong technical support ($33.21) with momentum indicators hinting at reversal, the stock could benefit from any positive catalyst—be it M&A closure, sector rotation, or short-covering.
• Medium-term: As earnings stabilise and macro sentiment recovers, renewed investor interest in energy infrastructure exposure—especially in digital and transition assets—could drive a multiple rerating.
• Long-term: Investors seeking diversified global energy and digital infrastructure exposure, with powerful megatrends in play (AI for energy, decarbonisation, urbanisation), may find current levels unusually attractive, especially when factoring in a protected and growing dividend yield.

Ideally, entry at or near support levels, or just ahead of news flow regarding the ChampionX integration or next-gen digital contracts, could optimise positioning for the coming cycle.

Is It the Right Time to Buy Schlumberger?

Bringing together all dimensions of our analysis, Schlumberger stands out as a distinctive opportunity at the cutting edge of the energy technology ecosystem. The stock benefits from a convergence of undervalued multiples, forward-looking catalysts, robust shareholder returns, and structural strengths in innovation and global reach.

• Key strengths: Defensive sector positioning, technological leadership, exposure to secular digital and ESG trends, and an attractive valuation buffer.
• Sector/market fit for ZA investors: Schlumberger offers an efficient USD-denominated hedge with diversified international risk and access to both conventional and new energy growth vectors—particularly relevant for those in South Africa seeking global portfolio rebalancing toward resilient, large-cap technology-enabled industrials.
• Bullish context: The company's adaptability and expansion into new markets, combined with immediate catalysts such as the ChampionX integration and rapid digital revenue growth, ground an optimistic projection for 2025 and beyond.

While risk management and a disciplined approach remain essential in the current environment, the upside potential, when weighed against historical valuation support and future business momentum, positions Schlumberger as a stock that may warrant close attention from investors seeking to capitalise on the forthcoming upcycle.

Schlumberger thus seems to represent an excellent opportunity for investors anticipating a period of structural recovery and innovation-led growth in the global energy technology sector. As the new cycle unfolds, SLB is uniquely placed to deliver both resilience and upside, making it a name that deserves consideration for inclusion in a forward-thinking investment portfolio.

How to buy Schlumberger stock in South Africa?

Buying Schlumberger (SLB) shares online is now easier and safer than ever for South African investors, thanks to regulated brokers that provide secure digital platforms. You can invest in SLB either by buying shares outright (“spot buying”) or by trading contracts for difference (CFDs), which allow you to speculate on price movements with or without leverage. Both options are accessible with a few clicks and a verified trading account. Below, we explain these two methods in detail, followed by a comparison of popular brokers available in ZA (see the comparison table further down the page).

Spot buying

Spot buying involves purchasing Schlumberger shares directly on the stock market and becoming a shareholder. This classic approach means you own the actual shares in your name, benefit from potential capital gains, and are eligible for dividends. Most SA-friendly brokers charge a fixed commission per order, often between R100 and R250, or around $5 to $15 USD, depending on the platform and currency exchange rates.

Example

Schlumberger’s current share price is $33.68. If you invest $1,000 (roughly R18,500 at an exchange rate of 18.5 ZAR/USD), you can buy about 29 shares after deducting a typical brokerage fee of approximately $5.
✔️ Gain scenario:
If the SLB share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, i.e. +10% on your investment. (Excluding possible currency fluctuations and tax.)

Trading via CFD

CFD (Contract for Difference) trading allows you to speculate on the price movements of Schlumberger shares without owning them directly. CFDs enable you to open positions with leverage—meaning you can control a larger exposure for a smaller initial outlay. With most brokers, you pay a spread (the difference between buy and sell prices), and overnight financing fees if you hold leveraged positions for more than a day.

Example

You open a CFD position on Schlumberger shares with a $1,000 investment and 5x leverage. This gives you market exposure of $5,000.
✔️ Gain scenario:
If the SLB share price rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain on a $1,000 stake (excluding spread and overnight fees).

Final advice

Before investing in Schlumberger or any US-listed shares, it’s crucial to compare brokers’ fees, access to foreign markets, supported account currencies, and conditions—fees and services can vary meaningfully. Your best choice depends on your investment goals: long-term investors may prefer spot buying for ownership and dividends, while active traders might opt for CFDs to use leverage. To help you decide, consult our updated broker comparison table just below this guide. Remember: investing in shares always involves risk, so choose a reputable broker and diversify your holdings.

Our 7 tips for buying Schlumberger stock

The latest news about Schlumberger

Schlumberger maintains direct operational presence and active partnerships in Southern Africa, supporting regional energy projects. Schlumberger (SLB) continues to play a strategic role in Sub-Saharan Africa, including in South Africa (ZA), through the provision of oilfield technology, digital services, and upstream consultancy, notably in offshore exploration and gas development initiatives that are of growing importance to South Africa’s future energy mix. Local subsidiaries and technology partnerships facilitate transfer of technical skills, enable local procurement, and support regulatory compliance such as Broad-Based Black Economic Empowerment (B-BBEE) requirements, underpinning sustainable long-term engagement in the region. This positions SLB as a preferred partner in local upstream projects—such as recent seismic, drilling, and digital subsurface mapping contracts—helping equip South African operators with advanced technology while meeting governmental localisation and transformation goals.

The company’s Q1 2025 results, while slightly below analysts’ expectations globally, signal resilience and sustained value for shareholders. Schlumberger reported Q1 2025 revenue of $8.49 billion and adjusted EPS of $0.72, both modestly lower year-on-year due to sector headwinds, but the company’s operational execution and cost controls mitigated more severe impacts. For South African analysts focused on defensive yield, it is notable that SLB maintained its quarterly dividend ($0.285/share, yielding 3.38%) and confirmed its commitment to return a minimum of $4 billion to shareholders in 2025. These signals suggest ongoing financial strength and prioritisation of capital return, which supports the reliability of SLB’s income stream for regional institutional investors and asset managers searching for stable cash flow from global equities.

Schlumberger’s leadership in digitalisation and data-driven energy solutions is driving strong regional uptake and future growth prospects. Digital revenues grew 17% in Q1, reflecting industry-wide demand for subsurface analytics, AI-led reservoir management, and decarbonisation services such as CCS (carbon capture and storage), all of which are highly relevant to ambitions for South Africa’s upstream, gas-to-power, and energy transition projects. Patent activity and local digital partnerships underpin growth, positioning SLB to lead in deploying digital twins, remote field monitoring, and predictive maintenance for African operators. This trend supports a premium over more traditional oil service peers and aligns with South African government and private sector goals for greater technology integration in resource industries.

The consensus of global financial analysts remains strongly positive, with upside targets that far exceed current undervalued share levels. Despite a challenging environment for oilfield service providers, consensus analyst targets for SLB remain at $47.5 per share (+41% above current price), supported by its global diversification, high barriers to entry, and sector-leading technology platform. South African financial markets have responded positively to this analyst support, with local fund managers continuing to increase SLB allocations in multi-asset and global equity mandates as a cyclical recovery play that also benefits from long-duration energy infrastructure spending, which dovetails with regional ambitions for indigenous gas development and infrastructure investment.

Recent strategic actions—including the $8 billion ChampionX acquisition and launch of new energy/AI initiatives—are expanding both global and regional relevance. The pending acquisition of ChampionX (expected to close Q2–Q3 2025) strengthens SLB’s position in production and digital technology, while ongoing investment in geothermal, emissions technology, and regional data center energy solutions aligns with South African priorities for new energy and digital transformation. These strategic moves have been underlined by sustained joint ventures and technology transfer programs relevant to the African continent, reinforcing the company’s international leadership and supporting a constructive long-term outlook for investors in South Africa.

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P. Laurore

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