NBR's Short-Term Outlook Has Not Improved
Operationally, Nabors Industries (NBR) has two primary headwinds: day rate in the U.S. onshore and the prospect of sharply lower drilling activity in some of its key international operations, including Saudi Arabia, Venezuela, and Colombia. Because international businesses account for more than half of its top-line, I think its operating margin will decline in the short term, which will also keep returns from the stock price depressed. In the past year, the stock underperformed (53% down) the VanEck Vectors Oil Services ETF (OIH) (39% down), which