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 $108.1 million.
- NBR is up 6.4% 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 0.6%. NBR has a PE ratio of 77.8. Currently there are 7 analysts that rate Nabors Industries a buy, 1 analyst rates it a sell, and 8 rate it a hold. The average volume for Nabors Industries has been 4.4 million shares per day over the past 30 days. Nabors has a market cap of $8.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 3.10 and a short float of 3.9% with 3.30 days to cover. Shares are up 57.7% 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 Nabors Industries as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 11.2%. Since the same quarter one year prior, revenues slightly increased by 3.5%. 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.
- Net operating cash flow has significantly increased by 142.26% to $444.56 million when compared to the same quarter last year. In addition, NABORS INDUSTRIES LTD has also vastly surpassed the industry average cash flow growth rate of 49.55%.
- Compared to its closing price of one year ago, NBR's share price has jumped by 69.40%, 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.
- NBR's debt-to-equity ratio of 0.63 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 1.52 is high and demonstrates strong liquidity.
- NABORS INDUSTRIES LTD's earnings per share declined by 48.4% 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 two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, NABORS INDUSTRIES LTD reported lower earnings of $0.49 versus $0.80 in the prior year. This year, the market expects an improvement in earnings ($1.16 versus $0.49).
- 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.