National Oilwell Varco Inc. (NOV): Today's Featured Energy Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

National Oilwell Varco ( NOV) pushed the Energy industry lower today making it today's featured Energy laggard. The industry as a whole closed the day up 0.3%. By the end of trading, National Oilwell Varco fell $2.05 (-2.9%) to $68.30 on heavy volume. Throughout the day, 6.3 million shares of National Oilwell Varco exchanged hands as compared to its average daily volume of 3.3 million shares. The stock ranged in price between $68-$70.25 after having opened the day at $70.02 as compared to the previous trading day's close of $70.35. Other companies within the Energy industry that declined today were: Geokinetics ( GOK), down 15.8%, New Concept Energy ( GBR), down 11.3%, Magellan Petroleum Corporation ( MPET), down 9.3%, and Cubic Energy ( QBC), down 6.6%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

National Oilwell Varco, Inc. designs, constructs, manufactures, and sells systems, components, and products for oil and gas drilling and production, as well as provides oilfield services and supplies, and supply chain integration services to the upstream oil and gas industry worldwide. National Oilwell Varco has a market cap of $29.96 billion and is part of the basic materials sector. The company has a P/E ratio of 12.5, below the S&P 500 P/E ratio of 17.7. Shares are up 3.2% year to date as of the close of trading on Thursday. Currently there are 18 analysts that rate National Oilwell Varco a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates National Oilwell Varco as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Samson Oil & Gas ( SSN), up 20.1%, Forbes Energy Services ( FES), up 10.7%, Longwei Petroleum Investment Holding Limite ( LPH), up 10.3%, and Apco Oil and Gas International ( APAGF), up 10%, were all gainers within the energy industry with BP ( BP) being today's featured energy industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the energy industry could consider Energy Select Sector SPDR ( XLE) while those bearish on the energy industry could consider Proshares Short Oil & Gas ( DDG).

Holiday Special: Subscribe to Action Alerts PLUS to see how Jim Cramer trades his $2.5 Million+ portfolio for 51% off the list price. Your first 14-days are FREE: Sign up today to get e-mail alerts before every trade.

null

More from Markets

Global Stocks Mixed, U.S. Futures Soften as Earnings, Oil, Rates Cloud Sentiment

Global Stocks Mixed, U.S. Futures Soften as Earnings, Oil, Rates Cloud Sentiment

Deutsche Bank Plans 'Significant' Job Cuts as Q1 Profits Slump

Deutsche Bank Plans 'Significant' Job Cuts as Q1 Profits Slump

Samsung Posts Record Q1 But Adds Cautious Voice To Smartphone Demand Forecasts

Samsung Posts Record Q1 But Adds Cautious Voice To Smartphone Demand Forecasts

Boeing Is Back to Cruising Altitude; GM Gets Assist From Amazon -- ICYMI

Boeing Is Back to Cruising Altitude; GM Gets Assist From Amazon -- ICYMI

Investors Shouldn't Be Worried About Trump's Trade Tariffs: Ian Bremmer

Investors Shouldn't Be Worried About Trump's Trade Tariffs: Ian Bremmer