Nabors Industries (NBR) Market Share Price Surged 46% in Q3

Miller Value Partners, an investment management company, released its “Deep Value Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The market rebound that began in April continued in the third quarter. Growth and momentum stocks continued to perform well, delivering double-digit returns, while the market began to broaden. Small and micro-cap value stocks achieved their best quarterly returns since Q4 2023. In the quarter, the Deep Value strategy appreciated by +26.50% compared to +6.29% return for the S&P 1500 Value Index and +11.71% return for the S&P 600 Value Index. Year-to-date, the strategy’s net returns are +9.20% vs +9.28% and +3.17%, respectively, for the indexes. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Miller Value Deep Value Strategy highlighted stocks such as Nabors Industries Ltd. (NYSE:NBR). Nabors Industries Ltd. (NYSE:NBR) is a drilling and drilling-related services provider for offshore oil and natural gas wells.  The one-month return of Nabors Industries Ltd. (NYSE:NBR) was 10.40%, and its shares lost 14.64% of their value over the last 52 weeks. On December 04, 2025, Nabors Industries Ltd. (NYSE:NBR) stock closed at $56.91 per share, with a market capitalization of $829.501 million.

Miller Value Deep Value Strategy stated the following regarding Nabors Industries Ltd. (NYSE:NBR) in its third quarter 2025 investor letter:

"During the quarter, ten of our twelve holdings delivered positive double-digit returns. The largest positive contributor was Nabors Industries Ltd. (NYSE:NBR), whose market share price was up 46%. Nabors Industries has undertaken a multi-year transformation focused on leveraging their industry’s leading technology. The company has over 450 patents, and has developed industry leading drilling automation/robotics, Rig Cloud platform and smart apps, rolling out globally, not only on Nabors rigs but also on third party rigs. During the quarter, Nabors sold their Quail Tools business segment for $600M. Sale proceeds will be used to accelerate debt reduction, enhancing the company balance sheet and liquidity.

Management achieving 2025 guidance and ongoing debt reduction would lead to Enterprise Value to EBITDA (forward 1-year) approaching 2.5x, an all-time low and a significant discount to Nabors 15-year average of 5.9x.

Nabors share price looks extremely attractive, at less than one times forward cash flow the only other period it has traded at a lower ratio was a brief time during the Covid 2020 outbreak. Current marketplace fears appear due to falling commodity prices, and expectations for additional rig cancellations. While oil prices falling towards $50/barrel is a potential risk, we believe this marketplace fear is well known and significantly discounted in Nabors current share price today. We believe Nabors long-term normalized EBITDA could be closer to $1.5B, and the company has debt reduction potential of $1B+ over the next five years. Nabors long-term upside potential is multiples of the current share price with the shares currently trading at greater than 50% normalized free cash flow yield."

Nabors Industries Ltd. (NYSE:NBR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Nabors Industries Ltd. (NYSE:NBR) at the end of the third quarter, which was 18 in the previous quarter. Nabors Industries Ltd. (NYSE:NBR) reported consolidated revenue of $818.2 million for the third quarter of 2025, reflecting a sequential decline of $14.6 million, or 1.8%. While we acknowledge the potential of Nabors Industries Ltd. (NYSE:NBR) 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.

Miller Value Deep Value Strategy increased its holdings in Nabors Industries Ltd. (NYSE:NBR) in Q2 2025. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.