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Weatherford (WFRD) Gains As Market Dips: What You Should Know

In the latest trading session, Weatherford (WFRD) closed at $63.21, marking a +0.85% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.2%. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, lost 1.54%.

Prior to today's trading, shares of the oilfield service company had gained 3.11% over the past month. This has outpaced the Oils-Energy sector's gain of 1.56% and lagged the S&P 500's gain of 4.14% in that time.

Investors will be hoping for strength from Weatherford as it approaches its next earnings release. On that day, Weatherford is projected to report earnings of $1.32 per share, which would represent year-over-year growth of 1300%. Meanwhile, our latest consensus estimate is calling for revenue of $1.23 billion, up 16.02% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.87 per share and revenue of $4.99 billion. These totals would mark changes of +466.28% and +15.26%, respectively, from last year.

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It is also important to note the recent changes to analyst estimates for Weatherford. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Weatherford currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Weatherford is holding a Forward P/E ratio of 12.88. For comparison, its industry has an average Forward P/E of 14.08, which means Weatherford is trading at a discount to the group.

The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 216, putting it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Weatherford International PLC (WFRD) : Free Stock Analysis Report

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Zacks Investment Research