Value
7.3/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 7.0 |
| P/S | 9.7 |
| EV/EBITDA | 5.3 |
| Fwd P/E | 7.7 |
| PEG | 6.4 |
| Analyst target | 7.5 |
- ▸Forward P/E: 16.0x
- ▸PEG: 1.15
- ▸Attractively valued
CLB · Why this verdict
Why Core Laboratories (CLB) is rated SELL
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
VerdictSELL
Overall score4.9/10
ConfidenceMEDIUM
MacroNEUTRAL
Thesis pillars
| Pillar | Expectation | Trend |
|---|---|---|
Core Laboratories has beaten earnings in 3 of its last 4 quarters, and the model flags an earnings catalyst edge with its next report in 25 days. Edge rationale | The beat streak should continue with at least 3 of the next 4 quarters beating estimates. | →Stable |
| CounterThe most recent quarter (2026-04-29) missed by 45%, showing the beat streak has already started to crack. | ||
Core Labs trades at a reasonable forward multiple with a PEG near 1.18 and converts earnings into cash exceptionally well, with free cash flow running at 152% of net income. Quality breakdown | FCF-to-net-income conversion should stay above 100% over the next 12 months for the cash-quality thesis to hold. | →Stable |
| CounterHigh FCF/NI conversion in an oilfield-services company can reflect underinvestment in capex during a downcycle rather than durable earnings quality. | ||
The stock's revenue is declining (-1%) and it has failed the model's momentum gate at 3.2 versus the 4.5 threshold, contributing to a weak overall score of 4.7 out of 10. Bear case | Revenue growth should turn positive and momentum score should climb back above 4.5 over the next 12 months for these bear-case flags to lift. | →Stable |
| CounterThe momentum notes explicitly describe the current move as a pullback in an uptrend, not confirmed weakness, since the 200-day moving average is still rising. | ||
Short interest is elevated at 29% of float, which the model characterizes as justified given the stock's other weak signals, alongside high implied volatility of 88%. Risk breakdown | Short interest should decline from 29% over the next 12 months if the bear thesis embedded in the short position proves wrong. | →Stable |
| CounterHigh short interest can also set up a short squeeze if the earnings catalyst in 25 days delivers a fourth beat. | ||
The options market shows a max pain level of $10, above the current price, alongside elevated implied volatility of 88%, suggesting the options market anticipates continued price pressure or a pin toward that level into expiration. Options | The stock should trade toward or above the $10 max-pain level as options expirations approach if the pinning dynamic plays out. | →Stable |
| CounterMax pain is a mechanical options-market artifact, not a fundamental signal, and often has limited predictive power beyond the nearest expiration. | ||
Core Laboratories has beaten earnings in 3 of its last 4 quarters, and the model flags an earnings catalyst edge with its next report in 25 days.
→StableEdge rationale
- Expectation
- The beat streak should continue with at least 3 of the next 4 quarters beating estimates.
CounterThe most recent quarter (2026-04-29) missed by 45%, showing the beat streak has already started to crack.
Core Labs trades at a reasonable forward multiple with a PEG near 1.18 and converts earnings into cash exceptionally well, with free cash flow running at 152% of net income.
→StableQuality breakdown
- Expectation
- FCF-to-net-income conversion should stay above 100% over the next 12 months for the cash-quality thesis to hold.
CounterHigh FCF/NI conversion in an oilfield-services company can reflect underinvestment in capex during a downcycle rather than durable earnings quality.
The stock's revenue is declining (-1%) and it has failed the model's momentum gate at 3.2 versus the 4.5 threshold, contributing to a weak overall score of 4.7 out of 10.
→StableBear case
- Expectation
- Revenue growth should turn positive and momentum score should climb back above 4.5 over the next 12 months for these bear-case flags to lift.
CounterThe momentum notes explicitly describe the current move as a pullback in an uptrend, not confirmed weakness, since the 200-day moving average is still rising.
Short interest is elevated at 29% of float, which the model characterizes as justified given the stock's other weak signals, alongside high implied volatility of 88%.
→StableRisk breakdown
- Expectation
- Short interest should decline from 29% over the next 12 months if the bear thesis embedded in the short position proves wrong.
CounterHigh short interest can also set up a short squeeze if the earnings catalyst in 25 days delivers a fourth beat.
The options market shows a max pain level of $10, above the current price, alongside elevated implied volatility of 88%, suggesting the options market anticipates continued price pressure or a pin toward that level into expiration.
→StableOptions
- Expectation
- The stock should trade toward or above the $10 max-pain level as options expirations approach if the pinning dynamic plays out.
CounterMax pain is a mechanical options-market artifact, not a fundamental signal, and often has limited predictive power beyond the nearest expiration.
TrendMatrix Research · core thesis
Engine thesis — one sentence
Core Laboratories offers an attractive valuation and strong cash conversion, but declining revenue, a failed momentum gate, and justified elevated short interest reflect real near-term operating headwinds.
Falsifiable statement — pillar-level invalidators below. Engine-derived; not personalized advice.
Per-dimension breakdown
Quality
4.3/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 3.7 |
| ROA | 3.2 |
| Gross margin | 0.0 |
| Op margin | 0.6 |
| Net margin | 2.8 |
| Current ratio | 7.1 |
| FCF quality | 10.0 |
| Moat | 3.9 |
| Piotroski F | 7.8 |
- ▸Excellent cash conversion: 152% FCF/NI
- ▸No competitive moat
- ▸Strong Piotroski F-Score: 7/9
Growth
3.5/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 2.1 |
| EPS growth | 4.8 |
- ▸Declining revenue: -1%
Momentum
3.0/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 3.5 |
| MACD | 6.8 |
| OBV | 1.0 |
| MA position | 2.2 |
| Volume | 1.5 |
- ▸Volume distribution (falling OBV)
- ▸Below 200-MA but MA still rising (+1.0%/30d) — pullback in uptrend, not confirmed weakness
Sentiment
6.4/10data confidence 100%| Component | Sub-score |
|---|---|
| Analyst rating | 5.0 |
| Price target | 9.3 |
| erm sentiment | 5.0 |
- ▸Analyst upside: 42%
Insider
4.7/10data confidence 50%| Component | Sub-score |
|---|---|
| materiality | 5.0 |
| holder change | 4.4 |
- ▸No net insider activity — $0 (0.000% of mkt cap)
Peer rank
5.1/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 7.5 |
| quality rank | 5.6 |
| growth rank | 2.8 |
Technical
5.3/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 6.8 |
| support resistance | 8.1 |
| 52w position | 1.0 |
Risk (lower is worse)
3.1/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 0.6 |
| days to cover | 0.0 |
| volatility | 0.0 |
| put call | 6.3 |
| implied vol | 0.4 |
| beta | 7.0 |
| debt equity | 7.3 |
- ▸High short interest justified: 29%
- ▸High IV: 78%
Catalyst
5.3/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 6.7 |
| earnings timing | 5.0 |
| surprise avg | 0.6 |
| dividend safety | 9.0 |
- ▸Strong earnings: 3B/1M
How the verdict was assembled
Engine trigger
Multiple concerning factors. Consider reducing position.
Engine technical detail
verdict_path:
L4:PATH_F_SELLPassed (7)
- ASYMMETRY:2.0>=1.5
- INSIDER:OK
- 8K:CLEAN
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:22d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (1)
- MOMENTUM:3.0<4.5
Warning (0)
none
Reward-to-Risk
1.99
Upside
+20.7%
Downside
10.4%
Sizing output
AVOID
Setup— — No clear chart pattern; technical signals are mixed
EdgeCatalyst-Driven — Earnings in 22d with 3/4 beat streak
SuitabilitySpeculative — Drawdown -45% (>40% off 52w high)
Investment implication
The F-path SELL output reflects an overall score of 4.9 below the 5.6 soft trigger — multiple weakening dimensions accumulated rather than a single hard-floor breach. The strongest dimension ( Value at 7.3) was not enough to lift the adjusted overall above the threshold. Co-occurring failed gates ( MOMENTUM:3.0<4.5) reinforce the read. Current asymmetry R:R is 1.99 — supplementary context, not the trigger for this path.
The strongest dimensions are Value at 7.3, Sentiment at 6.4, and Technical at 5.3; the weakest are Momentum at 3.0, Risk (lower is worse) at 3.1, and Growth at 3.5. The V9 engine flagged 1 failed gate, producing an asymmetric reward-to-risk of 1.99 and an engine sizing output of AVOID.
What would invalidate the thesis
Falsifying conditions — when triggered, the corresponding pillar's thesis is invalidated.
- P1Earnings Beat Streak Catalyst
Trip ifThe beat streak fails to recover, with at least 2 misses in the next 4 reported quarters.
- P2Attractive Valuation Strong Cash Conversion
Trip ifFCF-to-net-income conversion falls below 80% from the current 152%.
- P3Declining Revenue And Failed Momentum
Trip ifRevenue growth rises above 5% YoY, or momentum score rises above 4.5 from the current 3.2.
- P4Elevated Short Interest Justified
Trip ifShort interest falls below 15% of float from the current 29%.
- P5Options Market Pinning Near Max Pain
Trip ifThe stock stays above $10 (the current max-pain level) for more than 5 consecutive trading days.