Core Insights - The market is witnessing a potential multi-year outperformance cycle for low-valuation equities and small caps, which have lagged for about a decade [2] - Value stocks outperformed growth stocks by 269-724 basis points across all market caps in Q4 [3] - The concentration of large-cap technology stocks has increased significantly, with the top 12 AI-linked stocks adding approximately $15 trillion in market cap since the launch of ChatGPT in 2022, while their revenue growth was only $650 billion [5] Market Performance - In Q4, value stocks across various market caps showed significant outperformance compared to growth stocks, with the Russell Top 200 value stocks returning 3.81% versus 1.12% for growth, resulting in a 2.69% difference [4] - Small caps have shown signs of recovery, with earnings growth slightly exceeding that of larger companies for the first time in thirteen quarters [7] - The Deep Value Select strategy returned +5.09% in the last quarter, outperforming both the S&P 1500 Value Index and the S&P 600 Value Index [12] Capital Expenditure Trends - The five largest AI hyperscalers have seen their combined capital expenditures rise from $97 billion in 2020 to approximately $400 billion in 2025, with expectations of exceeding $600 billion by 2027 [6] - Technology sector capital expenditures as a percentage of U.S. GDP are projected to surpass the peak of 1.2% seen in 2000 [6] Company-Specific Insights - Nabors Industries improved its balance sheet significantly, reducing debt leverage from over 6x to near 2x, and is well-positioned to benefit from a potential increase in global rig demand [14][17] - JELD-WEN is undergoing a multi-year transformation to improve profitability, despite facing challenges in the housing market [19] - Conduent is in the midst of a multi-year transformation, focusing on streamlining operations and reducing debt, with a significant portion of its shares repurchased [20][24] Valuation Insights - Small caps are currently trading at a forward 1-year price-to-earnings multiple that is 30% lower than large caps, indicating a potential for valuation expansion [8] - The valuation spread between large-cap growth and small-cap value is near historical extremes, suggesting that small-cap value may be poised for outperformance [12]

Financial Announcements - Nabors Industries Ltd. announced the complete redemption of its 7.500% Senior Guaranteed Notes due 2028[4] - Preliminary balance sheet figures for the year ended December 31, 2025, were disclosed[4]

About Nabors Industries Nabors Industries (NYSE: NBR) is a leading provider of advanced technology for the energy industry. With presence in more than 20 countries, Nabors has established a global network of people, technology and equipment to deploy solutions that deliver safe, efficient and responsible energy production. By leveraging its core competencies, particularly in drilling, engineering, automation, data science and manufacturing, Nabors aims to innovate the future of energy and enable the transit ...

Core Viewpoint - Nabors Industries Ltd. will discuss its fourth-quarter operating results for the period ending December 31, 2025, during a conference call scheduled for February 12, 2026, at 10:00 a.m. Central Time [1]. Group 1: Conference Call Details - The earnings release will occur after market close on February 11, 2026 [1]. - Dial-in numbers for the conference call include US Toll Free: (888) 317-6003, Canada Toll Free: (866) 284-3684, and International: (412) 317-6061 [2]. - Participants are advised to call 10 to 15 minutes ahead of time for proper connection [2]. Group 2: Replay and Webcast Information - The conference call will be recorded and available for replay until February 19, 2026, at 4:00 p.m. CT [3]. - The recording can be accessed by calling (877) 344-7529 in North America or (412) 317-0088 internationally, using Conference Replay Entry Number: 2053589 [3]. - A live audio webcast of the conference call will be available on Nabors' website, with an electronic version of the earnings release and any supplemental presentation also accessible for download [4]. Group 3: Company Overview - Nabors Industries Ltd. is a leading provider of advanced technology for the energy industry, operating in over 20 countries [5]. - The company focuses on delivering safe, efficient, and responsible energy production through its core competencies in drilling, engineering, automation, data science, and manufacturing [5]. - Nabors aims to innovate the future of energy and facilitate the transition to a lower-carbon world [5].

Key Takeaways Nabors is posting persistent losses and repeated earnings misses, weakening investor confidence.Free cash flow remains fragile, relying on one-off asset sales like the recent Quail Tools sale.High capex, U.S. margin pressure and Mexico payment risks continue to strain near-term outlook.Nabors Industries Ltd. (NBR) is a leading global land-drilling contractor providing oil, gas and geothermal drilling services across nearly 20 countries. The U.S.-based multinational supplies land and offshore d ...

The share price of Nabors Industries Ltd. (NYSE:NBR) surged by 2.74% between December 22 and December 29, 2025, putting it among the Energy Stocks that Gained the Most This Week. Nabors Industries (NBR) Gets Double Upgrade from Analyst With operations in approximately 20 countries, Nabors Industries Ltd. (NYSE:NBR) is a leading provider of advanced technology for the energy industry. Nabors Industries Ltd. (NYSE:NBR) received a major lift on December 18 when Piper Sandler double upgraded the stock from ...

Core Insights - Nabors Industries Ltd. (NBR) has significantly underperformed compared to its peers and relevant benchmarks, with a share price decline of 12.4% over the past year, while the Oil and Gas – Drilling sub-industry grew by 4.8% [1][8] - The company faces operational challenges, market volatility, and ineffective business strategies, impacting its market position [3] Financial Performance - NBR's adjusted EBITDA decreased from $248 million in Q2 2025 to $236 million in Q3 2025, indicating pressure on profitability despite divesting a high-margin business [4] - The company is projected to have breakeven adjusted free cash flow for the full year 2025, limiting its capacity for debt reduction or shareholder returns [10] Market Challenges - The U.S. Lower 48 drilling market is experiencing muted activity and ongoing pressure, with a decline in average rig count and daily margins due to labor inefficiencies and harsh drilling conditions [5] - Operations in Mexico are facing significant uncertainty, with potential suspensions of offshore platform rigs and collection issues from PEMEX, leading to cash flow challenges [6][9] Capital Expenditures and Debt Management - NBR's capital expenditures are high, estimated at $715-$725 million for 2025, with no expected decline in 2026, consuming cash and limiting financial flexibility [10] - The reduction in net debt to a decade low was primarily due to a one-time asset sale, raising questions about the sustainability of leverage improvement without further divestitures [11] Segment Performance - The Drilling Solutions segment's EBITDA showed only modest growth, with competitive pressures limiting pricing power in a challenging market [12] - The Rig Technologies segment reported a decline in EBITDA due to reduced demand for aftermarket offerings, reflecting a broader slowdown in capital equipment spending [16] Future Outlook - Management's guidance for Q4 2025 indicates stagnation in total EBITDA, with expectations of a decline in specific segments, suggesting a lack of operational momentum [15] - The company's dependence on the SANAD joint venture in Saudi Arabia raises concentration risk, as its success is tied to the capital spending plans of a single national oil company [14]

Market Overview - The market rebound that began in April continued into the third quarter of 2025, with growth and momentum stocks delivering double-digit returns [1] - Small and micro-cap value stocks achieved their best quarterly returns since Q4 2023 [1] Performance of Deep Value Strategy - The Deep Value strategy appreciated by +26.50% in Q3 2025, outperforming the S&P 1500 Value Index (+6.29%) and the S&P 600 Value Index (+11.71%) [1] - Year-to-date, the strategy's net returns are +9.20%, compared to +9.28% for the S&P 1500 Value Index and +3.17% for the S&P 600 Value Index [1] Focus on Nabors Industries Ltd. - Nabors Industries Ltd. (NYSE:NBR) was highlighted as a significant holding, with a one-month return of 10.40% and a 52-week loss of 14.64% [2] - On December 04, 2025, Nabors Industries' stock closed at $56.91 per share, with a market capitalization of $829.501 million [2] Performance and Strategy of Nabors Industries - Nabors Industries was the largest positive contributor to the Deep Value strategy, with a market share price increase of 46% during the quarter [3] - The company is undergoing a multi-year transformation focused on leveraging leading technology, holding over 450 patents and developing industry-leading drilling automation and robotics [3] - Nabors sold its Quail Tools business segment for $600 million, with proceeds aimed at accelerating debt reduction and enhancing the company's balance sheet and liquidity [3]

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Core Insights - Nabors Industries Ltd. has received credit rating upgrades from two major agencies, reflecting the company's efforts to improve its balance sheet and reduce debt [1][4]. Group 1: Credit Ratings Actions - S&P Global Ratings upgraded Nabors' issuer credit rating to 'B' from 'B-' with a stable outlook and assigned a 'B+' rating to the recently issued Senior Priority Guaranteed Notes (SPGN) [4]. - Fitch Ratings also upgraded Nabors' Long Term Issuer Default Rating to 'B' from 'B-' with a stable outlook and assigned a 'BB-' rating to the recently issued SPGN [4]. - Moody's Investors Service assigned a rating of 'Ba3' to Nabors' recent SPGN issue, consistent with its rating on existing SPGN [4]. Group 2: Company Performance and Strategy - The company has made significant progress in deleveraging and strengthening its balance sheet, which has been recognized by credit rating agencies [2]. - Nabors aims to leverage its core competencies in drilling, engineering, automation, data science, and manufacturing to innovate in the energy sector and support the transition to a lower-carbon world [2].