Earnings Boosted Nabors Industries Stock: What about Wider Trends?



Nabors Industries’ share price reaction

Nabors Industries released its financial information for fiscal 4Q15 on February 16, 2016. Its stock reacted positively immediately after the earnings release. On the same day, the stock rose 5.5% to $6.30 from the previous day’s close. Since the beginning of this year, the share price is down ~27%.

Halliburton (HAL), NBR’s larger-market-cap peer in the oilfield equipment and services (or OFS) industry, released its financial information for fiscal 4Q15 on January 25. HAL’s share price fell ~4% on the day of its latest earnings results.

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NBR’s share price returns versus the industry

In the past year, Nabors Industries’ stock has returned about -52%, net of dividends, as of February 16. In the past year, NBR has underperformed the VanEck Vectors Oil Services ETF (OIH), which has returned -36%. The Energy Select Sector SPDR ETF (XLE), the broader energy industry ETF, has produced a -30% return. NBR managed to outperform the US rig count, which returned -60% in the past year. NBR has significantly underperformed the SPDR S&P 500 ETF (SPY), which has returned -9% during the same period. To learn why Nabors Industries has underperformed the industry, read Market Realist’s article NBR Continues to Underperform in the Oilfield Services Industry.

Next in this series, we’ll discuss Wall Street analysts’ targets for Nabors Industries.


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