Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Weatherford International ( WFT) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Weatherford International as such a stock due to the following factors:
- WFT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $90.0 million.
- WFT is down 3.7% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in WFT with the Ticky from Trade-Ideas. See the FREE profile for WFT NOW at Trade-Ideas More details on WFT: Weatherford International Ltd. provides equipment and services used in the drilling, evaluation, completion, production, and intervention of oil and natural gas wells worldwide. Currently there are 14 analysts that rate Weatherford International a buy, 1 analyst rates it a sell, and 4 rate it a hold. The average volume for Weatherford International has been 6.4 million shares per day over the past 30 days. Weatherford International has a market cap of $12.0 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.08 and a short float of 1.6% with 2.00 days to cover. Shares are up 39.3% year to date as of the close of trading on Tuesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Weatherford International as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins. Highlights from the ratings report include:
- Powered by its strong earnings growth of 86.48% and other important driving factors, this stock has surged by 29.86% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 86.1% when compared to the same quarter one year prior, rising from -$849.00 million to -$118.00 million.
- WEATHERFORD INTERNATIONAL reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, WEATHERFORD INTERNATIONAL swung to a loss, reporting -$1.02 versus $0.25 in the prior year. This year, the market expects an improvement in earnings ($0.84 versus -$1.02).
- The gross profit margin for WEATHERFORD INTERNATIONAL is currently lower than what is desirable, coming in at 28.00%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.05% is significantly below that of the industry average.
- The debt-to-equity ratio of 1.10 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, WFT has a quick ratio of 0.69, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- You can view the full Weatherford International Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.