Schlumberger Limited. (SLB), Halliburton Company (HAL): Is This Oilfield Services Company a Good Stock to Buy?

Another peer in oilfield services is Weatherford International Ltd (NYSE:WFT). It is another company which has been struggling recently, going by recent reports, though as with Halliburton Company (NYSE:HAL), analysts seem to expect that general improvements in the industry will strengthen its bottom line. Weatherford is valued at 11 times forward earnings estimates, even with Halliburton on that basis, and also posts a five-year PEG ratio below 1. As with that stock, it seems a bit risky to buy based entirely on the Street’s confidence in the 2014 numbers.

Conclusion

As a result, investors interested in oilfield services investments should probably start by looking at Schlumberger Limited. (NYSE:SLB), at least for now, at least out of the companies which have been discussed here. Weatherford International Ltd (NYSE:WFT) and Halliburton Company (NYSE:HAL) do feature lower forward P/Es, but in each case, the forward expectations incorporate a good deal of expected EPS growth next year from what are currently less appealing levels.

This article is written by Matt Doiron and edited by Meena Krishnamsetty. Meena has a long position in HAL.

The Motley Fool recommends Halliburton.

The article Is This Oilfield Services Company a Good Stock to Buy? originally appeared on Fool.com.

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