Zacks Analyst Blog Highlights: Schlumberger, Halliburton, Baker Hughes, Hess Corp. and Wyeth

Business Wire,  June 23, 2008  

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CHICAGO -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Schlumberger Limited (NYSE: SLB), Halliburton Co (NYSE: HAL), Baker Hughes Inc (NYSE: BHI), Hess Corporation (NYSE: HES) and Wyeth (NYSE: WYE).

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Here are highlights from Friday's Analyst Blog:

Better Buys Than Schlumberger

Our Hold recommendation on Schlumberger Limited (NYSE: SLB) shares remains unchanged as we continue to believe that Halliburton Co (NYSE: HAL) and Baker Hughes Inc (NYSE: BHI) offer better value in this space.

The company's results have benefited from ramped-up oilfield activity levels, particularly in regions outside North America, due to crude oil's strength. This trend is expected to remain in place going forward, with an improving onshore North American outlook complementing continued international strength. Plans to make additional share buybacks of $8 billion should also support valuation.

Schlumberger enjoys strong leverage to the current oilfield cycle. While activity levels in North America, particularly in the onshore markets, have reached peak cycle levels, most of the other global markets are at much earlier stages. We think that this plays to Schlumberger's strengths. Another significant growth driver for Schlumberger is Integrated Project Management (IPM).

We have reduced our 2008 earnings estimate ($4.82 vs. $5.15) and kept our 2009 estimate unchanged at $5.90. On June 13, Schlumberger declared that it has entered into an agreement with Hess Corporation (NYSE: HES) to supply geological, geophysical, reservoir engineering, economics, drilling, and production software. On June 8, Schlumberger announced the acquisition of Integrated Exploration Systems (IES), a supplier of advanced petroleum systems modeling software and services.

Wyeth's Long-Term Potential

Wyeth (NYSE: WYE) possesses a strong product offering with key products Effexor XR (antidepressant), Prevnar (vaccine against childhood infections) and Enbrel (arthritis). The company also has a number of intriguing strategic alliances and several potential billion-dollar drugs in the late-stage pipeline. However, recent pipeline setbacks will cause a drag on financial performance.

The company has made progress with expanding labels of existing products and forging ahead with its late-stage pipeline. Bowel drug Relistor gained approval for post-operative ileus in Canada in early April which we hope will soon translate into approvals in other countries. Alzheimer's candidate bapineuzumab is a potential mega-blockbuster that could be the long-term future for Wyeth.

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