Why Hedge Funds are Piling into Schlumberger (SLB)

Schlumberger Limited (NYSE:SLB) is included among the Best Crude Oil Stocks to Buy According to Hedge Funds.

Why Hedge Funds are Piling into Schlumberger (SLB)

An aerial view of a well site, depicting the scale of oil and gas operations.

Schlumberger Limited (NYSE:SLB) announced earlier this month that it has completed the acquisition of ChampionX, bringing the latter’s $850 million in revenue and $190 million in adjusted EBITDA into Schlumberger starting August 1. The transaction is expected to deliver $400 million in annual pre-tax synergies within three years of closing through revenue growth and cost savings. Following the integration of ChampionX, SLB expects second-half 2025 revenue to be between $18.2 billion and $18.8 billion.

Schlumberger Limited (NYSE:SLB) announced a quarterly cash dividend of $0.285 per share this month and currently boasts an annual dividend yield of 3.17%. The company also reiterated its target to pay $4 billion through dividends and share repurchases this year, staying true to its commitment of returning more than 50% of its free cash flow to shareholders.

Ariel Investments stated the following regarding Schlumberger Limited (NYSE:SLB) in its Q2 2025 investor letter:

“Shares of Schlumberger Limited (NYSE:SLB), the largest oilfield services company in the world by revenue, also underperformed amidst falling oil prices and trade tensions. While quarterly earnings came in slightly behind expectations, the market appears more concerned with the rising supply and weak macroeconomic conditions weighing on energy prices and oilfield services demand going forward. Nonetheless, we believe there are tailwinds supporting rising demand over the medium-term, as national oil companies invest in long-cycle projects to grow capacity and address the natural decline of production. We think SLB is the best positioned among the oilfield services companies, given their leading scale and expertise across nearly every product and service category, as well as their exposure to more resilient international markets. In the long run, we expect SLB will continue to evolve their capabilities to help clients with rising energy needs going forward.”

Schlumberger Limited (NYSE:SLB) is the world’s leading provider of technology for reservoir characterization, drilling, production, and processing to the global energy industry.

While we acknowledge the potential of SLB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SLB and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.