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 Nabors Industries ( NBR) as a post-market laggard 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 $57.6 million.
- NBR is down 4% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in NBR with the Ticky from Trade-Ideas. See the FREE profile for NBR NOW at Trade-Ideas More details on NBR: Nabors Industries Ltd., together with its subsidiaries, operates as a land drilling contractor in the United States, Canada, and internationally. The stock currently has a dividend yield of 0.9%. NBR has a PE ratio of 31.1. Currently there are 3 analysts that rate Nabors Industries a buy, 1 analyst rates it a sell, and 11 rate it a hold. The average volume for Nabors Industries has been 3.3 million shares per day over the past 30 days. Nabors has a market cap of $5.0 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.98 and a short float of 3.9% with 2.80 days to cover. Shares are down 2.4% year-to-date as of the close of trading on Monday. 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 Nabors Industries as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow. Highlights from the ratings report include:
- 36.75% is the gross profit margin for NABORS INDUSTRIES LTD which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -6.74% is in-line with the industry average.
- NBR's debt-to-equity ratio of 0.69 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that NBR's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.65 is high and demonstrates strong liquidity.
- NBR, with its decline in revenue, underperformed when compared the industry average of 8.1%. Since the same quarter one year prior, revenues fell by 10.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. 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.
- 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 236.9% when compared to the same quarter one year ago, falling from $76.41 million to -$104.63 million.
- You can view the full Nabors Industries 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.