The Energy Stock That Could Low-key Be the Biggest Winner of Trump’s Inauguration

It’s Trump’s inaugural address. Melania’s rocking a hat straight out of Walter White’s playbook (in his Heisenburg era), Bezos’s underdressed wife is catching Zuck’s eye (proving he might not actually be a lizard), and Elon’s bouncing around like he’s single handedly keeping Red Bull’s quarterly earnings alive. But the line that really hit me? Trump’s loud and proud, “Drill, baby, drill.” With that, the oil sector got its marching orders… and investors started licking their chops.

Leading this charge is Chris Wright, Trump’s pick for Energy Secretary, who is about as far from your average D.C. bureaucrat as you can get. He’s a 60-year-old MIT-trained engineer with a career built on fossil fuels and fusion energy. During his Senate confirmation hearing, he described energy as “a national asset, not a liability.” AKA: he’s here to make drilling great again. Wright’s plans include rolling back restrictions on drilling and LNG exports while tossing small nuclear reactors and geothermal energy into the mix for good measure. And you better believe that solar and wind will be riding the bench for now. Backing him up is Interior Secretary nominee Doug Burgum, who’s ready to milk every drop of energy out of public lands and waters. Together, they’re laying the groundwork for a domestic energy free-for-all… a dream scenario for SLB (formerly Schlumberger).

SLB recently demonstrated why it’s considered a leader in the energy sector.  Last Friday, SLB’s stock jumped 6% after reporting 92 cents per share in adjusted Q4 earnings, beating the 90-cent estimate (not a huge margin, but a win’s a win). Revenue hit $9.28 billion, blowing past the $9.18 billion consensus and growing from $9.16 billion a year ago. The drivers were three big things: massive oil projects in the Middle East, Europe’s ongoing scramble to shore up its energy security, and SLB’s tech-driven approach that’s making it a must-have partner for the energy world.

 

Compared to its competitors, SLB stands out. Halliburton reported $5.58 billion in Q4 revenue, and Baker Hughes posted $6.59 billion. While respectable, neither has matched SLB’s technological advancements or market reach (meaning, they’re broke). Under CEO Olivier Le Peuch, SLB has embraced AI, automation, and digital tools to drive growth. Case in point… the company’s Digital & Integration segment grew 10% last year, with digital revenue alone increasing 20% to $2.44 billion. This focus on innovation has given SLB a competitive edge that others are struggling to replicate. Le Peuch summed it up best: “AI is the X factor for our industry.” (In other words: We’re playing chess while the others are still learning checkers.)

SLB also prioritizes its shareholders, recently increasing its quarterly dividend by 3.6% to 28.5 cents per share and announcing a $4 billion stock buyback program for 2025. These moves demonstrate a commitment to returning value to investors, a strategy that sets SLB apart from rivals like Halliburton and Baker Hughes, whose dividend yields and valuations don’t offer the same level of appeal.

Halliburton’s dividend yield sits at 1.8%, and Baker Hughes offers 2.4%, both trailing SLB’s 3%. Toss in SLB’s massive buyback plan, and it’s clear who’s taking shareholder love seriously. SLB is trading at less than 11 times earnings, while its competitors are making investors pay a premium. Halliburton trades at 14 times earnings, and Baker Hughes at a steep 16 times earnings.

Trump’s energy policies are teeing up a home run for SLB. Domestic production is set to ramp up, global demand for oil shows no signs of slowing, and SLB has operations in over 100 countries ready to meet the call. The company’s relationships with energy giants in the Middle East, its foothold in Europe’s energy crisis, and its cutting-edge technology make it a powerhouse in the sector. Energy is as volatile as they come, and SLB isn’t immune. Oversupply, geopolitical instability (looking at you, Russia), and climate policies could cause some problems. But SLB is the best stock positioned to handle any problems.

If you’re ready to ride the “Drill, Baby, Drill” wave, SLB might be your best bet to cash in.

Stock.News does not have positions in companies mentioned.