Given how volatile the energy sector can be, as investors have seen lately with major service providers such as
Baker Hughes (NYSE:
BHI) and
Halliburton (NYSE:
HAL), as well as smaller names such as
Basic Energy (NYSE:
BAS), it's no surprise that
Schlumberger (NYSE:
SLB)
gets the premium that it does. Although it is not immune to the ups and
downs of the cycle, this is a company that executes on a consistent
basis. While Schlumberger's leading position in energy services offers
good leverage, it is worth asking if the stock's premium mitigates the
potential returns.
Continue reading here:
http://www.investopedia.com/stock-analysis/2012/Schlumbergers-The-Reliable-Name-In-An-Unreliable-Sector-SLB-HAL-BHI-BAS1022.aspx
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