Top stocks in oilfield services and auto parts appear on screen with rising estimates

Top stocks in oilfield services and auto parts appear on screen with rising estimates

In… of today IBD Screen of the Day, the focus is on top stocks with rising earnings estimates. There are 109 stocks that pop up. After further combing MarketSmith charts, two stocks are ready to break out: oilfield services company Schlumberger (SLB) and O’Reilly Automotive (ORLY).


Schlumberger makes a profit before the opening on Friday. It forms the right side of a cup with some volume. Shares have risen above their 50 days and 200-day moving averages, and even above their 21 Day Exponential Moving Average. Stocks are also rising relative strength line.

The company shows five consecutive quarters of accelerating revenue growth. It also has impressive annual profit estimates. Full-year earnings are expected to increase by 59% this year and by 39% in 2023. Estimates are going up.

Last quarter, Schlumberger beat earnings estimates and raised its full fiscal year outlook to at least $27 billion. The Houston-based multinational’s second-quarter earnings per share rose 66%. Revenue in the second quarter increased 20% to $6.8 billion.

Stocks approach buying points

“We expect these higher sales to result in earnings that exceed our previous expectations, given our ambition to end the year with adjusted EBITDA margins 200 basis points higher than Q4 2021,” said CEO Olivier Le Peuch after the publication of the results for the second quarter. .

The capital investment for 2022 is expected to be approximately $2 billion, according to the company.

The company is one of the world’s largest providers of offshore drilling services. It also provides technology for well drilling, manufacturing, and oil and gas processing.

Schlumberger takes first place in the oil and gas field services industry group, above other top rated companies such as: ProFrac (PFHC) and tidal water (TDW). SLB has a Composite Review out of 97 out of 99. The relative strength rating is 95 and the EPS rating is 79.

Despite the sharp rise in capital spending, oil and gas companies are unlikely to scale up their production operations in the near term. Indeed, with the price of crude oil now falling below $85 a barrel, major oil giants love Exxon Mobil (XOM), Chevron (CVX) and BP (BP) scale back their production. According to Baker Hughes, U.S. oil rig activity has fallen to just below 770 since a peak in late July 2022.

Auto parts chain is one of the best stocks to watch

Likewise, O’Reilly is approaching a 750.98 flat base point of sale, with its RS line reaching a new high. It is above the 50-day line and well above the 200-day moving average. The flat base is solid. The stock can move steadily upward from scraping the bottom of the base to approaching the buy point.

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The company is expected to announce earnings on October 26. It has a three-year earnings per share growth rate of 28% and a three-year revenue growth rate of 13%. It has a Composite Rating of 96, an EPS Rating of 88 and an RS Rating of 91.

O’Reilly ranks #2 in IBD’s auto parts group, behind Original parts (GPC) and higher AutoZone (AZO). AZO was a IBD Stock of the Day last week and also forms a cup.

With thousands of names to choose from, how can you efficiently find the best stocks to buy and watch?

For starters, target the best growth stocks that meet your criteria with IBD Stock Screener.

And investors can build their own screens from scratch, or start with IBD stock lists, especially the IBD 50, Industry leaders, Large hood 20 and IPO leaders.

From earnings and revenue growth to IPO date, dividend yield, EPS estimates for the current quarter and more, the screener is a valuable tool.

Follow Michael Molinski on Twitter @IMmolinski


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