SLB (SLB) has been on our radar for some time and its recent underperformance produces an interesting opportunity to gain long exposure with substantial upside potential.
That's nearly a 35% discount to the average S & P 500 stock, implying that the technical upside target is well within its historical valuation range.
With low volatility, options prices on SLB are extremely inexpensive and would benefit from a simple strategy such as buying a call option.
Additionally, we are only risking 7.7% of the stock's price to gain unlimited upside exposure.
BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.
Persons:
SLB, That's
Organizations:
CNBC, NBC UNIVERSAL