What's Driving Nabors Industries Ltd's Surprising 38% Stock Rally?

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Nabors Industries Ltd (NBR, Financial), a prominent player in the Oil & Gas industry, has been making headlines with its impressive stock performance. The company's stock price has seen a significant surge, with an 11.69% gain over the past week and a 38.35% gain over the past three months. Currently priced at $121.14, the company boasts a market cap of $1.16 billion. The GF Value, defined by GuruFocus.com, calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates. The GF Value of NBR stands at $124.48, compared to its past GF Value of $117.23 three months ago. This indicates that the stock is currently Fairly Valued, a significant improvement from its past GF Valuation of Modestly Undervalued.

Unveiling Nabors Industries Ltd

Nabors Industries Ltd is a renowned name in the Oil & Gas industry. The company owns and operates one of the world's largest land-based drilling rig fleets and provides offshore platform rigs in the United States and international markets. With operations in over 15 countries, Nabors Industries Ltd offers performance tools, directional drilling services, tubular running services, and innovative technologies. The company's key revenue is generated from International Drilling, one of its five reportable segments, which also include U.S. Drilling, Canada Drilling, Drilling Solutions, and Rig Technologies. 1698716587986518016.png

Profitability Analysis

When it comes to profitability, Nabors Industries Ltd holds a Profitability Rank of 3/10, indicating its profitability compared to other companies. The company's Operating Margin stands at 7.81%, which is better than 47.93% of 966 companies in the same industry. The company's ROE, ROA, and ROIC, which are -7.02%, -0.62%, and 0.87% respectively, further highlight its profitability. Over the past 10 years, the company has had 1 year of profitability, which is better than 10.67% of 947 companies. 1698716611650781184.png

Growth Prospects

Nabors Industries Ltd has a Growth Rank of 3/10, which measures its revenue and profitability growth. The company's 3-year and 5-year revenue growth rates per share are -11.70% and -11.10% respectively. However, the company's future total revenue growth rate estimate of 8.44% over a 3-year to 5-year period is better than 67.31% in 260 companies. The company's 3-year and 5-year EPS without NRI growth rates are 27.30% and 12.00% respectively, indicating potential for future growth. 1698716627312312320.png

Top Holders of Nabors Industries Ltd

The top three holders of Nabors Industries Ltd's stock are Jim Simons (Trades, Portfolio), who holds a 1.59% share, Steven Cohen (Trades, Portfolio), who holds a 0.22% share, and Paul Tudor Jones (Trades, Portfolio), who holds a 0.21% share.

Competitive Landscape

Nabors Industries Ltd faces competition from several companies in the Oil & Gas industry. Its main competitors include Diamond Offshore Drilling Inc (DO, Financial) with a market cap of $1.56 billion, Vantage Drilling International (VTDRF, Financial) with a market cap of $327.292 million, and Independence Contract Drilling Inc (ICD, Financial) with a market cap of $44.367 million.

Conclusion

In conclusion, Nabors Industries Ltd has demonstrated impressive stock performance with a significant surge over the past three months. The company's profitability and growth prospects, along with its competitive position in the Oil & Gas industry, make it a noteworthy player for investors. While the company has faced challenges in terms of revenue growth rates per share, its future total revenue growth rate estimate indicates potential for improvement. With top holders like Jim Simons (Trades, Portfolio), Steven Cohen (Trades, Portfolio), and Paul Tudor Jones (Trades, Portfolio), Nabors Industries Ltd continues to be a significant player in the stock market.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.