Buy alert: 2 energy stocks with ‘strong buy' ratings for August 2024

Company Overview - Schlumberger Limited (NYSE: SLB) is a global leader in oilfield services, providing technology for reservoir characterization, drilling, production, and processing across more than 120 countries [8] - Shell plc (NYSE: SHEL) is a global energy leader based in the UK, known for its strategic partnerships and robust financial performance [10] Financial Performance - Schlumberger reported Q1 2024 revenue of $8.71 billion, a 13$1.82 per share on revenues of $88.6 billion, following a previous quarter where earnings per ADS were$2.38 [2][5] Stock Performance and Valuation - Schlumberger's forward P/E ratio is 15.9x, slightly above the sector median of 12.18x, justified by its industry-leading position and technological edge [8] - Shell's stock is currently trading at 14 times forward earnings with a 3.69% dividend yield, having seen a 16% increase over the past year [2] Strategic Initiatives - Schlumberger plans a $7.8 billion acquisition of ChampionX, expected to enhance its production and intervention solutions portfolio, generating$400 million in annual pretax savings within three years post-closing [8] - Shell has launched a new $3.5 billion stock buyback program and boosted its quarterly dividend by 4$66 for Schlumberger, with a high forecast of $81, representing a potential upside of 37.61$48.33 [9] - For Shell, the average price target is $84.30, with a high forecast of$90, representing a 17% potential upside from the current price of $72.05 [12][13]