Core Insights - Two stocks in the energy sector are showing signs of being overbought, which may concern momentum-focused investors [1] Group 1: SLB NV (NYSE:SLB) - SLB is in discussions with US officials and Chevron to expand operations in Venezuela [4] - The stock has increased approximately 21% over the past month, reaching a 52-week high of $47.72 [4] - The RSI value for SLB is 76.5, indicating it is overbought [2][4] - SLB shares rose by 2.3% to close at $46.97 [4] - The momentum score for SLB is 78.67, with a value score of 36.41 [4] Group 2: Suncor Energy Inc (NYSE:SU) - Goldman Sachs analyst Neil Mehta maintained a Buy rating for Suncor Energy and raised the price target from $46 to $48 [4] - The stock has gained around 14% over the past month, with a 52-week high of $50.12 [4] - The RSI value for Suncor Energy is 78.1, indicating it is also overbought [2][4] - Suncor Energy shares increased by 3.2% to close at $49.65 [4]

Core Viewpoint - SLB's stock performance has outpaced major indices, and upcoming earnings are anticipated to show a decline in EPS but an increase in revenue [1][2]. Group 1: Stock Performance - SLB's stock increased by 1.66% to $45.90, outperforming the S&P 500, which fell by 0.19% [1]. - Over the last month, SLB shares have risen by 16.07%, while the Business Services sector experienced a loss of 0.17% [1]. Group 2: Earnings Estimates - SLB is expected to report earnings on January 23, 2026, with projected EPS of $0.74, a decrease of 19.57% from the same quarter last year [2]. - Revenue is estimated to be $9.54 billion, reflecting a 2.72% increase compared to the previous year [2]. Group 3: Full Year Projections - For the full year, earnings are projected at $2.89 per share, indicating a decline of 15.25%, while revenue is expected to remain flat at $35.78 billion [3]. Group 4: Analyst Estimates and Rankings - Recent adjustments to analyst estimates for SLB indicate near-term business trends, with positive revisions suggesting optimism about profitability [3][4]. - SLB currently holds a Zacks Rank of 3 (Hold), with a 1.4% rise in the Zacks Consensus EPS estimate over the past month [5]. Group 5: Valuation Metrics - SLB's Forward P/E ratio is 15.21, which is lower than the industry average of 16.89, indicating a valuation discount [6]. - The Technology Services industry, part of the Business Services sector, ranks 157 out of over 250 industries, placing it in the bottom 36% [6].

Core Viewpoint - SLB N.V. has been upgraded to 'Outperform' by Evercore ISI, with a price target raised from $38 to $54, indicating a clearer outlook for the company than in the past two years [1] Group 1: Company Developments - SLB's acquisition of ChampionX for $8 billion last year has been highlighted as a strategic move that has repositioned the company towards wellhead and production services, thereby reducing its overall risk profile [2] - The exit from APS through the Palliser deal is also noted as a factor contributing to SLB's improved positioning in the market [2] Group 2: Financial Projections - Evercore has raised its EPS estimates for SLB to $3.00 for 2026 and $3.40 for 2027, up from previous estimates of $2.97 and $3.30 respectively [2] Group 3: Market Performance and Opportunities - SLB's stock has surged nearly 18% since the beginning of 2026, driven by investor optimism regarding potential access to Venezuela's oil reserves, which require significant investment and services that SLB can provide [3] - The deteriorating state of Venezuela's oil infrastructure presents a substantial opportunity for SLB to boost crude production and enhance its revenue through a strong pipeline of projects [3]

Group 1: Industry Overview - According to Raytad Energy, global upstream exploration and development spending is expected to be around $600 billion in 2025, a decrease of 4% year-on-year, with deepwater investments projected to decline by 6% [1] - China's crude oil production has rebounded since 2019 due to a long-term strategy for increasing reserves and production, with a CAGR of 2.2% from 2019 to 2024, while natural gas production has a CAGR of 7.3% during the same period [1] - The "Big Three" oil companies in China have significantly increased capital expenditures from 2020 to 2023 and are expected to maintain high levels in 2024 and 2025, which will support upstream reserve growth and benefit their oil service subsidiaries [1] Group 2: Company Performance - In the first half of 2025, major oil service companies benefited from the ongoing domestic "increase reserves and production" initiative and the gradual release of overseas business performance, leading to improved operational quality despite falling oil prices [2] - CNOOC's oil service subsidiary reported a 23.3% year-on-year increase in net profit attributable to shareholders, while other companies like Haiyou Development and Haiyou Engineering saw net profit changes of +13.1% and -8.2% respectively, with the latter experiencing a 27% increase in gross profit [2] - The annualized ROE for CNOOC's oil service companies in the first half of 2025 showed resilience, with CNOOC at +1.5 percentage points compared to the full year of 2024, indicating a potential improvement in international competitiveness [2] Group 3: Market Performance - As of January 13, 2026, the National Petroleum and Natural Gas Index (399439) rose by 0.81%, with significant increases in stocks such as CNOOC's oil service (+6.03%) and China National Petroleum (+3.57%) [3] - The oil and gas ETF (159697) increased by 1.15%, reflecting a four-day consecutive rise, with the latest price reported at 1.23 yuan and a net subscription of 15 million units [3] - The top ten weighted stocks in the National Petroleum and Natural Gas Index account for 67.11% of the index, including major players like China National Petroleum, Sinopec, and CNOOC [3]

Group 1: SLB N.V. (NYSE:SLB) - SLB is considered best-in-class with strong international exposure and a technological edge driving higher margins [1] - Susquehanna analyst Bascome Majors maintained a positive rating on SLB and raised the price target from $42 to $52 [1] Group 2: Delta Air Lines, Inc. (NYSE:DAL) - Delta Air Lines is expected to report quarterly earnings with "pretty good" guidance despite shutdown effects in the fourth quarter [1] - Susquehanna analyst Christopher Stathoulopoulos maintained a positive rating on Delta Air Lines and raised the price target from $70 to $85 [2] - Delta Air Lines shares rose 0.7% to close at $72.31 [4] Group 3: Horizon Kinetics Inflation Beneficiaries ETF (NYSE:INFL) - Horizon Kinetics Inflation Beneficiaries ETF has a diverse portfolio including energy, financials, real assets, and materials [2] - The ETF gained 2.6% during the session [4] Group 4: SPDR Gold Shares (NYSE:GLD) - SPDR Gold Shares is being bought by investors, indicating positive sentiment [3] - SPDR Gold Shares rose 1.4% during the session [4]

Market Overview - The US stock market showed mixed results, with the Dow Jones Industrial Average rising by 270.03 points, or 0.55%, closing at 49,266.11 points. In contrast, the Nasdaq fell by 104.25 points, or 0.44%, ending at 23,480.02 points, while the S&P 500 index saw a slight increase of 0.53 points, or 0.01%, to close at 6,921.46 points [4][5]. Economic Outlook - Fitch Ratings has raised its GDP growth forecast for the US for 2025 and 2026, adjusting estimates due to delayed economic data from the government shutdown at the end of last year. The Federal Reserve is expected to lower the federal funds rate to 3.25% in the first half of 2026 [6]. - US Treasury Secretary Becerra indicated that most models suggest the Fed's interest rate range may fall between 2.5% and 3.25%, emphasizing that rates remain significantly above neutral levels [7]. Inflation and Employment - A monthly survey from the New York Federal Reserve revealed an increase in US inflation expectations for December, while consumer confidence in the job market has dropped to its lowest level in over 12.5 years [8]. Energy Sector - Oil prices increased, with WTI crude for February rising by 3.2% to settle at $57.76 per barrel, and Brent crude for March up by 3.4% to $61.99 per barrel. Energy stocks saw a broad increase, with ExxonMobil rising over 3%, Chevron up more than 2%, and ConocoPhillips increasing by over 5% [10][11]. Mining Industry - Glencore and Rio Tinto have resumed negotiations to potentially create the world's largest mining company, with a combined market value exceeding $260 billion. This merger is taking place against a backdrop of increasing competition for copper resources [14]. Technology Sector - The performance of major tech stocks was mixed, with the US Tech Giants Index declining by 0.27%. Notable movements included Amazon rising nearly 2% and Google increasing over 1%, while Apple fell by 0.5%, marking its seventh consecutive day of decline due to high interest rate expectations impacting growth stock valuations [16][18].

Core Insights - The oil sector is experiencing positive momentum due to efforts to redevelop Venezuela's energy infrastructure, leading to renewed interest in oilfield services companies and major oil firms [1] Group 1: Industry Developments - The redevelopment of Venezuela's energy infrastructure is a key driver for the current positive sentiment in the oil sector [1] - There is a growing interest from oilfield services companies and oil majors as a result of this momentum [1] Group 2: Analyst Background - The analysis is provided by a buy-side equity analyst with over a decade of experience in various sectors including oil and gas, oilfield services, and energy [1]

Core Viewpoint - SLB N.V. has seen a significant increase in its share price due to geopolitical developments in Venezuela, which may lead to substantial investment opportunities in the energy sector [1][3]. Group 1: Company Overview - SLB N.V. (NYSE:SLB) provides technology for the energy industry on a global scale [2]. - The company is positioned to benefit from potential investments in Venezuela's energy infrastructure following a US military action that captured President Nicolas Maduro [3]. Group 2: Market Impact - The share price of SLB surged by 13.18% from December 30, 2025, to January 6, 2026, marking it as one of the top-performing energy stocks during that week [1]. - Investors are optimistic that the revival of Venezuela's oil infrastructure will require SLB's services, including rigs, crews, and drilling equipment, which could lead to a strong pipeline of projects for the company [4]. Group 3: Future Prospects - The potential for SLB to significantly contribute to boosting Venezuelan crude production is highlighted, suggesting a positive impact on the company's revenue [4].

Core Viewpoint - The U.S. stock market experienced a significant decline, influenced by President Trump's announcement to prohibit large institutional investors from purchasing single-family homes, raising concerns about the housing market and economic slowdown [1][2][3]. Group 1: Stock Market Performance - The U.S. stock market saw most indices decline, with the Dow Jones dropping nearly 1% and the S&P 1500 residential construction index falling by up to 2.2% [1]. - Blackstone's stock plummeted by as much as 9.3%, while major banks like JPMorgan, Goldman Sachs, and Citigroup also experienced declines [2]. - The overall sentiment in the market was negative, with significant drops in energy stocks, including ExxonMobil and Chevron [3]. Group 2: Housing Market Impact - President Trump's proposed measures aim to make housing more affordable for Americans by restricting institutional investors from buying single-family homes, which he claims has made homeownership increasingly unattainable for many, especially young people [2]. - Analysts express skepticism about the actual impact of the ban on housing prices, noting that institutional investors hold a relatively small share of the overall market [3]. Group 3: Economic Indicators - The U.S. private sector added 41,000 jobs in December, which was below the market's expectations of approximately 50,000 [5]. - Mortgage rates decreased from 6.32% to 6.25%, the lowest since September 2024, but this decline did not stimulate mortgage demand, as applications fell by 9.7% during the holiday period [4].

Core Viewpoint - SLB is experiencing a decline in stock price despite a significant gain over the past month, with upcoming earnings expected to show a decrease in EPS but an increase in revenue [1][2]. Group 1: Stock Performance - SLB closed at $42.37, reflecting a -2.89% change from the previous day, underperforming the S&P 500's loss of 0.34% [1] - Over the past month, SLB shares have increased by 13.92%, while the Business Services sector and S&P 500 gained 2.46% and 1.19%, respectively [1]. Group 2: Earnings Expectations - SLB is set to release its earnings report on January 23, 2026, with an anticipated EPS of $0.74, indicating a 19.57% decline from the same quarter last year [2]. - The consensus estimate projects revenue of $9.54 billion, which represents a 2.74% increase compared to the equivalent quarter last year [2]. Group 3: Full Year Projections - For the full year, earnings are projected at $2.89 per share, reflecting a -15.25% change from the previous year, while revenue is expected to remain flat at $35.78 billion [3]. Group 4: Analyst Sentiment - Recent changes in analyst estimates for SLB suggest a positive outlook on the company's business operations and profit generation capabilities [3]. - The Zacks Rank system currently rates SLB at 4 (Sell), indicating a lack of upward momentum in EPS estimates over the past month [5]. Group 5: Valuation Metrics - SLB is trading at a Forward P/E ratio of 14.91, which is lower than the industry average of 17.07, suggesting that SLB may be undervalued [6]. - The Technology Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 109, placing it in the top 45% of over 250 industries [6].