NEW YORK (TheStreet) -- Shares of Nabors Industries (NBR) - Get Report are increasing 1.93% to $9.53 in midday trading on Thursday, as oil prices rebound this afternoon in volatile trading.

After declining earlier today, oil prices are gaining as traders attempt to evaluate the oversupply of U.S. oil, the Wall Street Journal reports. 

On Wednesday the Energy Information Administration announced that U.S. oil output increased last week, snapping two weeks of losses, but the data also showed that U.S. crude-oil stockpiles fell more than expected, according to the Journal.

"The supply glut is slowly easing, at least in North America, and should continue to disappear on the back of declining U.S. shale oil production, " Norbert Ruecker, head of commodities research at Julius Baer, said in a note, the Journal said.

WTI crude is increasing 0.40% to $44.66 per barrel, while Brent crude is up 0.44% to $47.96 per barrel this afternoon, according to the index.

Nabors Industries, based in Hamilton, Bermuda, owns and operates a land-based drilling rig fleet in North America.

Separately, TheStreet Ratings team rates NABORS INDUSTRIES LTD as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate NABORS INDUSTRIES LTD (NBR) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. "

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Energy Equipment & Services industry. The net income has significantly decreased by 156.1% when compared to the same quarter one year ago, falling from $65.68 million to -$36.82 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Energy Equipment & Services industry and the overall market, NABORS INDUSTRIES LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $210.23 million or 47.63% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 56.63%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 166.66% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • NABORS INDUSTRIES LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, NABORS INDUSTRIES LTD swung to a loss, reporting -$2.35 versus $0.51 in the prior year. This year, the market expects an improvement in earnings (-$0.25 versus -$2.35).
  • You can view the full analysis from the report here: NBR