NEW YORK (TheStreet) -- Nabors Industries Limited (NBR) - Get Nabors Industries Ltd. Report stock closed up 1.07% to $10.38 on Wednesday, after oil prices edged up slightly and supported energy stocks.
Oil prices closed slightly higher, after BakerHughes said the number of active U.S. oil rigs fell by 9 to 555 rigs in the last week, Marketwatch reports.
Still, concerns about an oversupply in oil will weigh on prices, Eugene McGillan, senior analyst at Tradition Energy, told Marketwatch.
Crude oil (WTI) is up 0.54% to $43.10 per barrel and Brent oil is up 0.25% to $46.24 per barrel, according to the CNBC.com index.
Based in Bermuda, Nabors operates a land-based drilling rig fleet in the U.S. and Canada.
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 number of negative factors, 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 379.0% when compared to the same quarter one year ago, falling from $106.05 million to -$295.83 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 significantly decreased to $87.61 million or 78.00% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much 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 43.14%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 352.94% 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 (-$0.33 versus -$2.35).
- You can view the full analysis from the report here: NBR
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.