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Trade-Ideas LLC identified

Nabors Industries

(

NBR

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Nabors Industries as such a stock due to the following factors:

  • NBR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $54.9 million.
  • NBR is up 3.6% today from today's close.

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More details on NBR:

Nabors Industries Ltd., together with its subsidiaries, provides drilling and rig services. The stock currently has a dividend yield of 2.7%. Currently there are 14 analysts that rate Nabors Industries a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Nabors Industries has been 7.5 million shares per day over the past 30 days. Nabors has a market cap of $2.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 1.65 and a short float of 3.5% with 2.06 days to cover. Shares are up 5.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Nabors Industries as a

sell

. 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 ratings report include:

  • 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 422.1% when compared to the same quarter one year ago, falling from $123.63 million to -$398.29 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. 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 $161.51 million or 47.42% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, NABORS INDUSTRIES LTD has marginally lower results.
  • The share price of NABORS INDUSTRIES LTD has not done very well: it is down 23.01% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, NABORS INDUSTRIES LTD continued to lose money by earning -$1.14 versus -$2.35 in the prior year. For the next year, the market is expecting a contraction of 35.1% in earnings (-$1.54 versus -$1.14).

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