Schlumberger (SLB) is one of the premier oilfield service companies in the world. While I have held SLB for several months personally and for clients, the stock is turning into a much longer term holding than I originally anticipated. I am expecting 20% or more EPS growth for SLB in the next several years and consider it an excellent long term investment. Considering my projected annual growth rate in earnings of at least 20% for several years, SLB sells at a reasonable 21 times current year’s consensus and 18 times next year’s estimates. Put this together and you get a sub 1 PEG ratio stock which is a bargain. As a result, today I bought SLB for my children’s accounts (on the morning dip) thereby adding the company to the Bar Mitzvah Portfolio. SLB now joins Apple Computer (AAPL), Goldman Sachs (GS), Google (GOOG), McDonald’s (MCD) and Sears Holdings (SHLD) in the Bar Mitzvah Portfolio.
At the time of this Blog entry