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Analyzing Weatherford’s Stock in the Past Year

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Weatherford’s stock price 

As of August 4, 2017, Weatherford International (WFT) stock has fallen 19% in the past year. Weatherford has underperformed the VanEck Vectors Oil Services ETF (OIH), which has generated -14% returns during this period. The WTI (West Texas Intermediate) crude oil price has risen 19% during the past year. To learn more about energy prices changing aspects, read Gasoline Demand and Crude Oil Inventories Drive Oil Futures.

Despite relatively steady crude oil prices, oilfield services companies like Baker Hughes, a GE company (BHGE), and National Oilwell Varco’s (NOV) stock prices have fallen in 2017. The US rig count has been on an uptrend. It has risen 106% in the past year as of August 4, 2017.

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The Energy Select Sector SPDR ETF (XLE), the broader energy industry ETF, has produced -3% returns since August 4, 2016. Weatherford International has vastly underperformed the SPDR S&P 500 ETF (SPY), which has generated 13% returns during the same period. The Dow Jones Industrial Average (DJIA-INDEX) rose 19% in the past year. The energy sector makes up 5.9% of the DJIA-INDEX.

What impacted Weatherford’s returns in 2Q17?

  • Weatherford’s US operations saw higher revenues in 2Q17.
  • Weatherford’s Latin America operations saw revenue growth.
  • Contracts ramped up in the Middle East and Asia region.
  • The Gulf of Mexico saw a downturn in the offshore energy market.
  • Weatherford’s operations in the North Sea and Russia saw weaker product sales.

Read Nabors’ Alliance with Weatherford: How Did the Market Respond? for more information about Weatherford’s joint venture with Nabors Industries (NBR).

In the next part, we’ll discuss what Weatherford’s implied volatility means for its stock price.

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