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Is it Worth Holding Weatherford (WFT) in Your Portfolio?
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We issued an updated research report on leading oilfield services provider Weatherford International plc on May 9, 2017. The company holds a leading position in the global oilfield services market. However, commodity price volatility remains an overhang on the stock.
Weatherford is among the top players in each of its product/service categories and is present in most major hydrocarbon-producing regions of the world. The company boasts very strong relationships with both publicly traded and national oil companies worldwide.
We appreciate the oilfield services player’s aggressive cost-control initiatives, especially amid the volatile business scenario. Over the period of 2014 to 2017, the company will likely to generate cost savings of as much as $3 billion.
Notably, Weatherford is expected to lower its drilling time significantly by using process managed pressure drilling. In fact, the company has reduced non-productive time by 21% year over year.
These positives are reflected in the company’s share price chart. Year to date, Weatherford’s stock gained 1.8% compared with 14.8% decrease for the Zacks categorized Oil Field Machinery & Equipment industry.
However, the company reported first-quarter 2017 adjusted loss of 32 cents per share, wider than the Zacks Consensus Estimate of a loss of 31 cents as well as the year-earlier adjusted loss of 29 cents per share. The underperformance is mainly attributable to the adverse impact of pressure pumping operations and lower product sales.
Moreover, during the first quarter, Weatherford’s revenues from International Operations fell 13% year over year. This is a cause for concern as the company derives a significant portion of its revenues from the international market.
Stocks to Consider
Some better-ranked players in the energy sector include Bellatrix Exploration Ltd. , McDermott International Inc. and W&T Offshore Inc. (WTI - Free Report) . Bellatrix Exploration sports a Zacks Rank #1 (Strong Buy), while McDermott and Bellatrix Exploration carry a Zacks Rank #2 (Buy).
McDermott beat the Zacks Consensus Estimate in each of the trailing four quarters with an average positive surprise of 387.50%.
W&T Offshore had an average positive earnings surprise of 69.21% in the last four quarters.
Bellatrix Exploration surpassed the Zacks Consensus Estimate in three of the last four quarters with an average positive earnings surprise of 58.54%.
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Is it Worth Holding Weatherford (WFT) in Your Portfolio?
We issued an updated research report on leading oilfield services provider Weatherford International plc on May 9, 2017. The company holds a leading position in the global oilfield services market. However, commodity price volatility remains an overhang on the stock.
As a result, the company carries a Zacks Rank #3 (Hold), implying that the stock will perform in line with the broader U.S. equity market over the next one to three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Weatherford is among the top players in each of its product/service categories and is present in most major hydrocarbon-producing regions of the world. The company boasts very strong relationships with both publicly traded and national oil companies worldwide.
We appreciate the oilfield services player’s aggressive cost-control initiatives, especially amid the volatile business scenario. Over the period of 2014 to 2017, the company will likely to generate cost savings of as much as $3 billion.
Notably, Weatherford is expected to lower its drilling time significantly by using process managed pressure drilling. In fact, the company has reduced non-productive time by 21% year over year.
These positives are reflected in the company’s share price chart. Year to date, Weatherford’s stock gained 1.8% compared with 14.8% decrease for the Zacks categorized Oil Field Machinery & Equipment industry.
However, the company reported first-quarter 2017 adjusted loss of 32 cents per share, wider than the Zacks Consensus Estimate of a loss of 31 cents as well as the year-earlier adjusted loss of 29 cents per share. The underperformance is mainly attributable to the adverse impact of pressure pumping operations and lower product sales.
Moreover, during the first quarter, Weatherford’s revenues from International Operations fell 13% year over year. This is a cause for concern as the company derives a significant portion of its revenues from the international market.
Stocks to Consider
Some better-ranked players in the energy sector include Bellatrix Exploration Ltd. , McDermott International Inc. and W&T Offshore Inc. (WTI - Free Report) . Bellatrix Exploration sports a Zacks Rank #1 (Strong Buy), while McDermott and Bellatrix Exploration carry a Zacks Rank #2 (Buy).
McDermott beat the Zacks Consensus Estimate in each of the trailing four quarters with an average positive surprise of 387.50%.
W&T Offshore had an average positive earnings surprise of 69.21% in the last four quarters.
Bellatrix Exploration surpassed the Zacks Consensus Estimate in three of the last four quarters with an average positive earnings surprise of 58.54%.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>