Legendary investor George Soros has increased his holdings of Weatherford International ( WFT , quote ), an oil and gas service and equipment provider, to go along with recent investments in YPF SA ( YPF , quote ), an Argentine oil and gas company, as detailed in an article on www.emergingmoney.com .
These purchases in the oil and gas sector come as the exchanged traded fund for oil, United States Oil ( USO , quote ), is lower for the week, month and year.
Like USO, WFT is down for for the year, off by almost 40%. The trend has not been its friend, either, as it is trading below its 20-day, 50-day and 200-day moving averages.
This despite sales growth (33.32%) and earnings growth (98.85%) rising impressively on a quarter-by-quarter basis.
Next year, the earnings per share growth rate is projected to rise by almost 80%. For the next five years, it is estimated to increase by more than 50%.
Many other financials are equally attractive. Over the next year, the price-to-earnings ratio is expected to fall to under 9. At present, the price-to-sales ratio is barely 0.87.
In addition to George Soros, many others in the professional investor community are bullish on Swiss-based Weatherford International.
Institutions own over 70% of the stock, which is a very strong sign of support. Now trading around $14, the mean analyst target price for Weatherford International over the next year is $21.31.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.