Schlumberger Ltd. (NYSE: SLB) remains the king of oil and gas services, but its stock is down almost 70% over the past five years.
Schlumberger’s price of $34.86 and its consensus target price of $49.06 implies upside of 40.7%. The dividend yield is 5.2% at the current price. Schlumberger has a 52-week range of $33.86 to $65.74 and a $48.2 billion market cap. Its shares are down by 5.0% so far in 2019.
Halliburton Co. (NYSE: HAL) has been such a poor performer that it’s currently less than a $20 stock. It is down over 50% from its 52-week high and is down close to 70% over the past five years. That’s even with it having repurchased many of its shares along the way.
At $19.67 a share, the implied upside to Halliburton’s consensus target price of $32.65 is 66.0%. And the dividend yield is 3.7%. Halliburton has a 52-week range of $19.10 to $42.57 and a $17.2 billion market cap. Its shares are down by 27.0% so far in 2019.
Between Exxon and Chevron, Exxon has a greater implied upside with analysts calling for nearly 18% compared to Chevron’s 13%.
Among Occidental, EOG and Conoco, analysts are calling for EOG to have the greatest upside going forward at 43.5%.
As for Halliburton, Schlumberger and Baker Hughes, analysts are picking Halliburton as the top dog in the group with an implied upside of 66%.
If some of those price targets sound too high with too much upside in them, it may mean that the analyst community hasn’t lowered its price targets enough. And maybe one analyst was right about low-risk refiners being the safe harbor in energy.
It is hard to get excited about the oil and gas sector after the trading history has been so poor in recent years. The sector seems to lose more favor every time that the price of oil tanks, but the rallies always seem to look and feel very disappointing. And the carnage in shares equals to a certain extent with master limited partnerships, services companies, equipment makers and so on. All that can be said for great upside and opportunity now is that oil and gas would perhaps be the next largest contrarian bet after coal.