NEW YORK (TheStreet) -- Shares of Nabors Industries  (NBR - Get Report) are down 2.09% to $11.93 in afternoon trading today as oil prices fall.

Both benchmarks are down, with Brent down 1.19% to $57.19 at 2:13 p.m. in New York, while West Texas Intermediate fell 2.2% to $47.11.

Global oil prices erased early gains in volatile trading today before the expiry of their front-month contracts and in fears of a supply build at the delivery point for U.S. oil, Reuters reports.

Brent followed WTI lower as traders reacted to the imminent expiry next week of the April front-month contracts for both oils.

U.S. crude prices are falling after market data provider Genscape estimated a stock build of 2.2 million barrels since Friday in the Cushing, Oklahoma, delivery point for oil, traders told Reuters.

This adds to the supply weighing on the industry, reported yesterday, when the Energy Information Administration said U.S. crude stockpiles rose by 4.5 million barrels last week.

Nabors Industries is a Bermuda-based provider of services for land-based and offshore oil and natural gas wells.

Separately, the average recommendation of 20 brokers' estimates is 2.4, with a 2 rating representing an "outperform" rating and a 3 a "hold." The mean price target is $14.70.

TheStreet Ratings team rates NABORS INDUSTRIES LTD as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate NABORS INDUSTRIES LTD (NBR) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."

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

  • 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 688.7% when compared to the same quarter one year ago, falling from $151.35 million to -$891.07 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. 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 gross profit margin for NABORS INDUSTRIES LTD is currently lower than what is desirable, coming in at 33.02%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -49.95% is significantly below that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 42.79%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 828.57% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • NABORS INDUSTRIES LTD 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, NABORS INDUSTRIES LTD swung to a loss, reporting -$2.35 versus $0.51 in the prior year. This year, the market expects an improvement in earnings ($0.20 versus -$2.35).
  • You can view the full analysis from the report here: NBR Ratings Report