Weatherford International (WFRD): Valuation Check After Summit Street’s New Stake and Improving Fundamentals
Summit Street Capital Management just opened a meaningful new stake in Weatherford International (WFRD), committing roughly $27.3 million in the third quarter. This move puts fresh attention on the stock.
See our latest analysis for Weatherford International.
The timing lines up with the market’s tone, too, with Weatherford’s share price up 3.82% over the last day and a strong 27.71% 3 month share price return. Its five year total shareholder return of 1265.38% highlights how powerful the longer term recovery has been.
If this kind of turnaround story has your attention, it may be worth scanning for other resilient names using our screener for aerospace and defense stocks as another hunting ground for ideas.
Yet with shares already up sharply in recent months and trading only modestly below analyst targets, the real question is whether Weatherford still offers upside for new investors or whether the market is already pricing in future growth.
Most Popular Narrative: 4.5% Undervalued
With Weatherford International last closing at $80.10 against a narrative fair value of $83.90, the story frames modest upside built on improving fundamentals.
Ongoing company transformation shifting from legacy, low-margin businesses (recent divestitures in Argentina and slimming down unprofitable offerings) toward higher-margin, technology-enabled services, digitalization, and integrated projects should drive both net-margin expansion and earnings resilience through the cycle.
Want to see what powers that higher valuation line? The narrative leans on firming margins, steady earnings growth, and a future multiple that challenges today’s market skepticism.
Result: Fair Value of $83.9 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, sustained softness in international markets and persistent pricing pressure could undercut margin gains and delay the earnings growth this narrative relies on.
Find out about the key risks to this Weatherford International narrative.
Build Your Own Weatherford International Narrative
If you see things differently or prefer to dig into the numbers yourself, you can build a tailored story in just minutes. Do it your way.
A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Weatherford International.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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