Nabors Industries (NBR) has quadrupled in about two months thanks to the impressive rally of the price of oil. However, the company is still far from recovering from the coronavirus crisis and is poised to post a loss for a seventh consecutive year. Given also its excessive debt load, investors should take advantage of the recent rally and sell the stock.
Business overview
Nabors Industries was struggling even before the pandemic. Technological advances have enabled oil producers to extract more oil from a given number of wells. Consequently, Nabors now generates lower revenues