Monday, September 23, 2024

♟ Could SLB be the Next Great Value Stock?

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"In a market where the dow Is hitting historic Highs, SLB could now represent one of the last true 'value' plays."

Bryan Bottarelli, Head Trade Tactician, Monument Traders Alliance

Bryan Bottarelli

For all you oil and gas traders, this article is right up your alley...

If you recall, last week, I alerted you that the Energy Select Sector SPDR Fund (XLE), which is a collection of the top oil plays, had been down 6 out of the last 7 trading sessions.

I told you that this down-move had taken it into "oversold" territory – and an October or November-dated upside play could be used to capitalize on this opportunity.

Since that time, XLE bounced – exactly as predicted – and many War Room traders locked in strong gains from this forecasted move.

This was a great trade.

But for today, I'd like to take this one step further...

And detail why Schlumberger (SLB) could be one of the very best values on Wall Street right now.

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Here's a quick summary...

Currently trading around $42.65 per share, it's down -23% so far in 2024 (and nearing 52-week lows), which means that it now trades at 11x 2024 earnings and under 10x estimated 2025 profits of $4.13 per share.

Plus, it yields +2.8% as well.

As one of the world's leading oil-services companies, they operate in 100 countries – while global oil demand stands at over 100 million barrels per day.

With oil recently dipping below $70 per barrel in past weeks, this could be the time to "buy low" on this oil-services leader?

Buying Low on Schlumberger (SLB)
 
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YOUR ACTION PLAN

In a market where the Dow is hitting historic highs, SLB could now represent one of the last true "value" plays. If you like buying stocks that are cheap, then SLB is certainly a name to keep on your radar. It could also be a wonderful candidate for Karim's put-selling strategy – using a January 30 put for 2025 (or beyond).

If you want to see how we're trading the oil/energy sector – plus other market-moving catalysts – you're invited to join us in Catalyst Cashouts. Our next trade will be revealed LIVE on Tuesday, September 24th at 2:00 PM EST – so be sure to join us to get this new play the instant it's published.

Yes! Sign Me Up for Catalyst Cashouts LIVE!


Also: Last Chance to RSVP for Our September In-Person Meet-Up!

When: Thursday, September 26th from 6:00 PM to 9:00 PM CST

Where: Rivers Casino, 3000 S. River Road Des Plaines, IL 6001

It's Free! Just RSVP Below & You're Confirmed!

RSVP HERE

*IMPORTANT NOTE: This is an In-Person event only. There will not be a livestream or zoom option. Please only sign up if you're in the Chicagoland area – and you can attend in person.

This meet-up is a social gathering - designed to allow you to meet your fellow traders, gurus, and tacticians in person. So, please come with as many questions, suggestions, and tips as you can – because we're all here to collaborate tother – with the end goal of maximizing your profitability with our elite trading services!

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MONDAY MARKET MINUTE

  • New Highs to Close September: Despite being such a historically bearish month, stocks rose last week after the Federal Reserve cut interest rates - and the Dow closed at a record high Friday. This week's concern could be the fact that the U.S. government is rapidly moving towards a shutdown – as congress has only a week to pass a spending bill or let funding for major parts of the government lapse one month before the 2024 election. Tracking.
  • Bullish Case for Quanta (PWR): One of the biggest beneficiaries from the AI boom is the "pick and shovel" companies that build electrical infrastructure – and one of the leaders is Quanta Services PWR. They've long-benefited from U.S. infrastructure spending and growing demand for electricity. But now that growing electricity demand is rapidly expanding - led by the artificial-intelligence data center boom – it's time to make a move.
  • Adobe Call Spread? Despite their recent earnings report - which beat sales and earnings – shares of ADBE dropped due to an outlook that did not meet expectations. Was this yet another classic Wall Street over-reaction? It could be another buying opportunity.
  • REE Automotive in play: One of last week's most active options play was REE, with call purchases out-pacing put purchases by 6,400 to 523. That's quite a bullish ratio, which could be something we jump into this week.

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