Weatherford International (WFT) Stock Hits One-Year High on Heavy Volume

NEW YORK (TheStreet) -- Weatherford International  (WFT) rose to a one-year high of $17.89 on Wednesday on higher-than-average volume.

More than 10.7 million shares had changed hands as of 12:05 p.m., which exceeded the average volume of 8,938,130. Weatherford was also one of the biggest Wednesday gainers in the energy sector, which rose in morning trading.

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Separately, TheStreet Ratings team rates WEATHERFORD INTERNATIONAL as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate WEATHERFORD INTERNATIONAL (WFT) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to its closing price of one year ago, WFT's share price has jumped by 33.41%, exceeding the performance of the broader market during that same time frame. 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.
  • WEATHERFORD INTERNATIONAL 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. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, WEATHERFORD INTERNATIONAL continued to lose money by earning -$0.44 versus -$1.02 in the prior year. This year, the market expects an improvement in earnings ($1.05 versus -$0.44).
  • WFT, with its decline in revenue, underperformed when compared the industry average of 8.2%. Since the same quarter one year prior, revenues slightly dropped by 7.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The debt-to-equity ratio of 1.07 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, WFT maintains a poor quick ratio of 0.71, which illustrates the inability to avoid short-term cash problems.
  • 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 122.1% when compared to the same quarter one year ago, falling from -$122.00 million to -$271.00 million.
  • You can view the full analysis from the report here: WFT 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.

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.

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