Weatherford’s stock price
Since the week ending October 27, 2017, Weatherford International (WFT) stock has risen 22% until November 3, 2017. The VanEck Vectors Oil Services ETF (OIH) generated 5% returns during this period. So, Weatherford outperformed OIH in the past week. On November 3, 2017, the WTI (West Texas Intermediate) crude oil price was 6% higher—compared to the WTI crude oil price on October 27, 2017. To learn more about what has been happening in the energy market, read How Rise in Oil Could Affect Your Energy Investments.
Oilfield services companies like Schlumberger (SLB) and National Oilwell Varco’s (NOV) stock prices have fallen in 2017, despite rising crude oil prices. To learn more about Schlumberger, read Schlumberger: A Look at Its Fiscal 3Q17 Performance. Last week, 11 US rigs came offline until November 3, 2017. Since November 4, 2016, the US rig count has risen 58%, mainly due to rising crude oil prices.
The Energy Select Sector SPDR ETF (XLE) has generated 2% returns since October 27, 2017. The SPDR S&P 500 ETF (SPY), which generated zero return, also underperformed Weatherford during the same period. The Dow Jones Industrial Average (DJIA-INDEX) has remained unchanged for the past week until November 3, 2017.
What impacted Weatherford’s returns in 3Q17?
- a strong rise in revenues in Weatherford’s Well Construction, Completions, and Artificial Lift product lines
- lower cost structure in the US and increased activity levels in the United States and Canada
- decline in deeper water offshore work activity in Sub-Sahara Africa
Read Weatherford International: Valuation, Analyst Targets, and More and What’s Keeping Weatherford Down despite Margin Improvement? to learn more about Weatherford.
In the next part, we’ll discuss what Weatherford’s implied volatility means for its stock price.