Weatherford International plc (WFRD): A Bull Case Theory

We came across a bullish thesis on Weatherford International plc (WFRD) on The Small Cap Strategist’s Substack by Strategist and Architect. In this article, we will summarize the bulls’ thesis on WFRD. Weatherford International plc (WFRD)'s share was trading at $53.68 as of July 15^th. WFRD’s trailing and forward P/E were 8.55 and 9.5 respectively according to Yahoo Finance.

Weatherford International (WFRD) is a global energy services firm with operations in 75 countries and a diversified portfolio spanning the entire well lifecycle, from drilling to abandonment. Following a major restructuring in 2019, the company has focused on deleveraging, cost optimization, and digital transformation, exemplified by a recent partnership with AWS to modernize operations and enhance customer value.

Despite a challenging macro environment and a 12% revenue decline in Q1 2025 due to weakness in Mexico, North America, and Europe, Weatherford maintains strong adjusted free cash flow generation and a leaner cost base, having reduced headcount and streamlined operations. Management, led by CEO Girish Saligram and supported by a board with deep industry experience, has prioritized disciplined capital allocation through debt reduction, sustained dividends, and share buybacks.

While its market share trails peers like SLB and Halliburton, Weatherford’s competitive edge lies in its specialized technologies, integrated service model, and growing suite of digital solutions such as ForeSite and CygNet. Analysts suggest the stock is undervalued, with price targets up to $145 versus current levels near $90. The company’s 8.6x P/E multiple and healthy net leverage ratio of 0.5x offer additional valuation comfort.

However, risks include cyclicality, geopolitical tensions, and competitive pressures. A reverse thesis sees these headwinds limiting upside. Yet, if Weatherford executes on its strategy and benefits from a stabilizing energy market, its high free cash flow, digital positioning, and deleveraging efforts could drive a significant rerating, making WFRD a compelling long-term investment for risk-tolerant investors.

Previously we covered a bullish thesis on Valaris Limited by Alpha Ark in February 2025, which highlighted the company’s modern offshore fleet, constrained rig supply, and significant discount to replacement value. The company’s stock price has appreciated approximately 1.23% since our coverage. This is because day rate momentum offset macro pressures. The thesis still stands as offshore fundamentals remain intact. Strategist and Architect shares a similar view on Weatherford, but emphasizes on diversification, digital initiatives, and capital discipline.

Weatherford International plc (WFRD) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held WFRD at the end of the first quarter which was 36 in the previous quarter. While we acknowledge the potential of WFRD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.