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 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 $129.7 million.
- NBR is up 2.4% 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, provides drilling and rig services; and completion and production services. It offers equipment manufacturing, instrumentation optimization software, and directional drilling services. The stock currently has a dividend yield of 0.7%. NBR has a PE ratio of 45.4. Currently there are 5 analysts that rate Nabors Industries a buy, no analysts rate it a sell, and 10 rate it a hold. The average volume for Nabors Industries has been 4.7 million shares per day over the past 30 days. Nabors has a market cap of $7.0 billion and is part of the basic materials sector and energy industry. The stock has a beta of 3.08 and a short float of 3.8% with 2.36 days to cover. Shares are up 41.5% 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 buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, expanding profit margins, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Highlights from the ratings report include:
- 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 443.9% when compared to the same quarter one year prior, rising from $27.83 million to $151.35 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.2%. Since the same quarter one year prior, revenues slightly increased by 2.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- 35.73% 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 9.41% trails the industry average.
- Compared to its closing price of one year ago, NBR's share price has jumped by 50.03%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- NABORS INDUSTRIES LTD's earnings per share declined by 6.7% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, NABORS INDUSTRIES LTD reported lower earnings of $0.51 versus $0.80 in the prior year. This year, the market expects an improvement in earnings ($1.15 versus $0.51).
- 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.