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Nabors Industries

Nabors Industries NYSE:NBRAnother candidate on the “wait another quarter” list is unconventional drilling specialist Nabors Industries (NYSE:NBR).

The world’s largest land-rig contractor fell hard after forecasting lower margins for its U.S. unit this quarter. According to its latest conference call, normalized margins for the company’s drilling business in the Lower 48 is expected to fall by about $1,000 a day. This is because many rigs are about to roll off expiring higher-rate contracts and work for lower “spot” prices without long-term agreements.

Yet, there are plenty of positives at the firm. Nabors completed about $460 million in net debt reductions and added nine additional long-term unconventional land rig contracts to its order book.

All in all, Goldman Sachs estimates that Nabors is currently trading at a 34% discount to its book value and will be the biggest winner as onshore drilling heats up in the new year.

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