Nabors Declines 21% in 3 Months: Should You Buy the Stock?

Zacks2024-12-31

Nabors Industries NBR has seen its stock price fall 21.2% in the past three months, significantly underperforming the broader oil and gas sector and the drilling oil and gas sub-industry’s decrease of...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2495900697?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-12-31 19:25","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2495900697","market":"us","top_or_hot":-1,"title":"Nabors Declines 21% in 3 Months: Should You Buy the Stock?","media":"Zacks","content":"<div>\n<p>Nabors Industries NBR has seen its stock price fall 21.2% in the past three months, significantly underperforming the broader oil and gas sector and the drilling oil and gas sub-industry’s decrease of...</p>\n\n<a href=\"https://finance.yahoo.com/news/nabors-declines-21-3-months-112500480.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Nabors Declines 21% in 3 Months: Should You Buy the Stock?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNabors Declines 21% in 3 Months: Should You Buy the Stock?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-31 19:25 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/nabors-declines-21-3-months-112500480.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Nabors Industries NBR has seen its stock price fall 21.2% in the past three months, significantly underperforming the broader oil and gas sector and the drilling oil and gas sub-industry’s decrease of...</p>\n\n<a href=\"https://finance.yahoo.com/news/nabors-declines-21-3-months-112500480.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"PTEN","symbol_name":"Patterson-UTI Energy","start_time":0,"source_url":"https://finance.yahoo.com/news/nabors-declines-21-3-months-112500480.html","article_id":"2495900697","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2495900697","pubTimestamp":1735644300,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Nabors Industries NBR has seen its stock price fall 21.2% in the past three months, significantly underperforming the broader oil and gas sector and the drilling oil and gas sub-industry’s decrease of 5% and 15.2%, respectively. In comparison, competitors like Transocean RIG and Helmerich & Payne HP dropped only 16.4% and 0.6% respectively, while Patterson-UTI PTEN saw a rise of 2.5%.With such a sharp fall, investors are left asking, is this an opportunity to buy at a discount or a signal to avoid the stock altogether?NBR is a global leader in drilling services, operating in about 20 countries. The company provides advanced land and offshore drilling rigs to the oil and gas industry. Additionally, it has a 100% ownership stake in Nabors Arabia, actively marketing rigs in the Middle East, one of the world’s most lucrative drilling markets.Exposure to Market Volatility: As an oil and gas service provider, Nabors is highly vulnerable to fluctuations in oil prices and geopolitical risks. T","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"PTEN":"Patterson-UTI Energy","NBR":"纳伯斯","BK4092":"石油与天然气钻井","RIG":"Transocean Ltd.","HP":"赫尔默里奇和佩恩材料"},"translate_title":"Nabors 3个月内下跌21%：您应该购买该股票吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"HP":1,"NBR":1,"PTEN":1,"RIG":1},"content_text":"Nabors Industries NBR has seen its stock price fall 21.2% in the past three months, significantly underperforming the broader oil and gas sector and the drilling oil and gas sub-industry’s decrease of 5% and 15.2%, respectively. In comparison, competitors like Transocean RIG and Helmerich & Payne HP dropped only 16.4% and 0.6% respectively, while Patterson-UTI PTEN saw a rise of 2.5%.\nYTD Price Performance\nImage Source: Zacks Investment Research\nWith such a sharp fall, investors are left asking, is this an opportunity to buy at a discount or a signal to avoid the stock altogether?\nWhat Does Nabors Bring to the Table?\nNBR is a global leader in drilling services, operating in about 20 countries. The company provides advanced land and offshore drilling rigs to the oil and gas industry. Additionally, it has a 100% ownership stake in Nabors Arabia, actively marketing rigs in the Middle East, one of the world’s most lucrative drilling markets.\nHamilton-based company primarily generates revenues by drilling wells for oil and gas companies, offering the expertise and equipment necessary to extract these vital resources. However, recent financial results and market conditions raise questions about its growth potential.\nDisappointing Performance in Q3\nIn its latest earnings report, Nabors posted a wider-than-expected loss of $3.35 per share, missing the Zacks Consensus Estimate of a loss of $1.79. The underperformance was caused by higher expenses across general administration, research and engineering, and interest costs.\nFind the latest EPS estimates and surprises on Zacks Earnings Calendar.\nOn the other hand, NBR’s adjusted free cash flow also dropped to $18 million in the third quarter from $57 million in the previous quarter, largely due to a hefty $82 million in interest payments and increased capital expenditures.\nWhat is Dragging Down NBR Stock?\nHigh Debt and Limited Flexibility: Nabors faces financial challenges with a debt-to-capitalization ratio of nearly 93%. While no major debt maturities are due until 2027, most free cash flow is directed toward debt repayment rather than growth initiatives or shareholder returns. This restricts the company’s ability to capitalize on market opportunities.\nDeclining U.S. Drilling Revenues: Reduced activity and lower daily margins in the Lower 48 U.S. market have put pressure on revenues from the domestic drilling segment. Margins dropped to $15,051 per day and this trend may continue as older contracts adjust to current rates.\nHeavy Capital Expenditures: Nabors has raised its 2024 CapEx target to $600 million, driven by accelerated new-build projects in Saudi Arabia. While this indicates strong demand, it strains the company’s liquidity, limiting NBR’s ability to pursue other strategic opportunities.\nExposure to Market Volatility: As an oil and gas service provider, Nabors is highly vulnerable to fluctuations in oil prices and geopolitical risks. The recent suspension of three rigs in Saudi Arabia highlights how quickly market conditions can change, adding uncertainty to its growth outlook.\nShould Investors Buy the Dip?\nDespite its challenges, Nabors operates in a critical sector with long-term demand for drilling services. Its global presence, especially in high-potential regions like the Middle East, remains a key strength. However, the company’s heavy debt load, declining cash flow and reliance on volatile oil prices create significant risks. For investors with a high-risk tolerance and a long-term horizon, the current dip might seem tempting. But without clear signs of financial improvement or market stabilization, we believe the safer approach may be to stay on the sidelines.\nFinal Words: Avoid NBR Stock\nThis Zacks Rank #4 (Sell) company has been facing significant headwinds from heavy debt and declining U.S. revenues to high capital demands and market volatility. Until the company demonstrates stronger financial performance and operational stability, it is advisable to look elsewhere for opportunities in the oil and gas sector.\nYou can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nTransocean Ltd. (RIG) : Free Stock Analysis Report\nPatterson-UTI Energy, Inc. (PTEN) : Free Stock Analysis Report\nNabors Industries Ltd. (NBR) : Free Stock Analysis Report\nHelmerich & Payne, Inc. (HP) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2495900697"}