Schlumberger: Overlooked AI Play And One Of My Biggest Contrarian Ideas For 2025

Summary:

• I believe Schlumberger is undervalued and poised for a turnaround in 2025, driven by its strong financials and AI integration.
• SLB trades at less than 11 times earnings, offers a 3% dividend yield, and is aggressively buying back shares, signaling confidence in its valuation.
• Despite a 30% YTD decline, SLB’s robust cash flow, low debt, and strategic capital allocation make it a compelling investment for long-term value.
• The macroeconomic environment, including potential deregulation under President Trump and increased oil production, sets up favorably for SLB’s growth and profitability.

The year is winding down, and I am considering what investments will work well in 2025. I think 2025 will be similar to 2024 in that technology will drive the market higher, but there are some themes and investments that the investment community

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN, META, GOOGL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I plan on starting a position in SLB over the next week

Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for myself or someone else, it may not be the correct investment for you.

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