Undervalued Schlumberger shares could rise 28%, Barron's writes

Despite a bright outlook, Schlumberger (SLB +1.2%) is undervalued by as much as 28%, Barron's writes; shares trade for 16x expected 2014 EPS of $5.70 and 13.5x 2015 estimated earnings, a discount to the S&P 500 as well as SLB's historical levels.

Global demand for oil continues to grow, but increasingly reserves are located in areas that are hard to drill, a long-term boon for SLB's leading technologies; in the nearer term, big oil companies will spend more money in 2014 than in 2013 on SLB's services, and SLB continues to progress with its efficiency and reliability initiatives.

SLB's international presence means it is more exposed to Brent crude oil prices, not WTI prices, which could suffer as U.S. product outstrips refining capacity.

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