Why Schlumberger NV (SLB) Stock is a Compelling Investment Case

·3 min read

First Eagle Investment Management recently released its Q3 2020 Investor Letter, a copy of which you can download here. The First Eagle Global Fund A Shares posted a return of 5.64% for the third quarter (without sales charge), underperforming its benchmark, the MSCI World Index which returned 7.93% in the same quarter. You should check out First Eagle's top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, First Eagle highlighted a few stocks and Schlumberger NV (NYSE:SLB) is one of them. Schlumberger NV (NYSE:SLB) is an oilfield services company. Year-to-date, Schlumberger NV (NYSE:SLB) stock lost 64.1% and on October 29th it had a closing price of $14.45. Here is what First Eagle said:

"Oilfield services giant Schlumberger struggled to gain traction following the initial pandemic-related selloff of the first quarter. The company has been aggressive in cutting costs in response to the difficult operating environment; it has slashed about 25% of its workforce, reduced its dividend and sold off assets, including its North American hydraulic fracking business. We see Schlumberger’s financial strength and dominant market position as sources of resilience that may potentially enable it to respond positively if and when oil prices rebound."

In Q2 2020, the number of bullish hedge fund positions on Schlumberger NV (NYSE:SLB) stock increased by about 8% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in Schlumberger's growth potential. Our calculations showed that Schlumberger NV (NYSE:SLB) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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Disclosure: None. This article is originally published at Insider Monkey.