Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Drilling contractor Nabors Industries
So what: Revenue jumped from $1.4 billion a year ago to $1.84 billion and topped analyst estimates. Earnings per share fell a penny short of estimates at $0.49, but investors were apparently willing to overlook that today.
Now what: The market has been worried about a decline in the pressure pumping business because of a reduction in natural gas fracking, but Nabors appears to be weathering the storm. Management said that existing contracts would give the pumping unit a "respectable" year and high oil prices would keep demand high for the company's other products. Trading for under $17 and a forward P/E ratio of 6.5, the shares look attractive right now, and I think this is a great time to buy.
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