Weatherford Stock Fell in the Week Ending September 22
Weatherford’s stock price vis-à-vis industry and crude oil
Since the week ending September 15, 2017, Weatherford International (WFT) stock has fallen 4% until September 22, 2017. The VanEck Vectors Oil Services ETF (OIH) has generated 2% returns during this period. So, Weatherford International has underperformed OIH in the past week. The WTI (West Texas Intermediate) crude oil price rose 2% compared to the WTI crude oil price on September 15, 2017. Read What if US Crude Actually Does Stay above $50? for more on energy prices.
Oilfield services companies’ stock prices, like Schlumberger (SLB) and National Oilwell Varco (NOV), have fallen in 2017 despite relatively steady crude oil prices. To learn more, read What Lies Ahead for National Oilwell Varco in 2017. The US rig count has risen 83% in the past year until September 22, 2017. However, the US rig count has fallen in the past two weeks until September 22, 2017.
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The Energy Select Sector SPDR ETF (XLE) has produced 2% returns since September 15, 2017. The SPDR S&P 500 ETF (SPY) has generated zero returns. SPY outperformed Weatherford during the same period. The Dow Jones Industrial Average (DJIA-INDEX) didn’t change in the week ending September 22, 2017.
What can impact Weatherford’s returns in 3Q17?
- North America will continue to grow due to Canada’s rebound from the spring break-up and new contract commencement in the US.
- There was an increase in 3Q17 revenue from the Europe, Caspian, Russia, and sub-Saharan Africa region due to higher activity levels in the North Sea.
- The operating margins in the Middle East, North Africa, Asia-Pacific region are expected to remain flat in 3Q17 due to higher project start-up costs and an unfavorable change in the geographic mix.
To learn more about Weatherford International, read What’s Keeping Weatherford Down despite Margin Improvement? and Weatherford International: Valuation, Analyst Targets, and More.
In the next part, we’ll discuss what Weatherford International’s implied volatility means for its stock price.