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 1%. By the end of trading, National Oilwell Varco fell $2.88 (-3.9%) to $71.26 on heavy volume. Throughout the day, 12.6 million shares of National Oilwell Varco exchanged hands as compared to its average daily volume of 3.7 million shares. The stock ranged in price between $69.52-$72.98 after having opened the day at $72.98 as compared to the previous trading day's close of $74.14. Other companies within the Energy industry that declined today were: SandRidge Mississippian Trust II ( SDR), down 14.4%, Cubic Energy ( QBC), down 8.3%, SandRidge Energy ( SD), down 6.5%, and Quicksilver Resources ( KWK), down 5.1%.
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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 $31.45 billion and is part of the basic materials sector. The company has a P/E ratio of 13.1, below the S&P 500 P/E ratio of 17.7. Shares are up 7.8% year to date as of the close of trading on Thursday. Currently there are 19 analysts that rate National Oilwell Varco a buy, no analysts rate it a sell, and three 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, Zion Oil & Gas ( ZN), up 13.8%, GeoPetro Resources Company ( GPR), up 8.9%, Carbo Ceramics ( CRR), up 8.8%, and Lone Pine Resources ( LPR), up 8.3%, were all gainers within the energy industry with Schlumberger ( SLB) 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).

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