From Yahoo Finance: 2025-05-05 11:10:00

Schlumberger Limited (NYSE:SLB) is among the most undervalued energy stocks according to hedge funds. The energy sector is undervalued by 13.1%, attributed to the trade war and plunging crude oil prices. OPEC+ announced a production increase, affecting oil prices. The global energy industry sees growth potential from data centers due to the AI boom. Big Tech investing in data centers has also revived sectors like nuclear energy.

Schlumberger Limited (NYSE:SLB) slightly missed Q1 2025 revenue estimates, but North America posted growth supported by data center infrastructure. The company is expanding beyond fossil fuels, with revenue from other sectors expected to exceed $1 billion in 2025. In Q1, cash flow from operations doubled, and free cash flow was $103 million. Ariel Investments sees potential in SLB amid short-term challenges and a shift to renewable energy.

Overall, SLB ranks 4th in the most undervalued energy stocks list. Hedge funds see potential in SLB, but believe AI stocks offer higher returns in a shorter timeframe. An AI stock with significant potential is highlighted, trading at less than 5 times its earnings. For more insights on AI and billionaire stock picks, check out Insider Monkey’s articles.



Read more at Yahoo Finance: Is Schlumberger Limited (SLB) the Most Undervalued Energy Stock to Buy According to Hedge Funds?