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 down 1.0%. By the end of trading, National Oilwell Varco fell $0.89 (-1.3%) to $66.32 on heavy volume. Throughout the day, 7,277,667 shares of National Oilwell Varco exchanged hands as compared to its average daily volume of 4,259,900 shares. The stock ranged in price between $65.10-$66.42 after having opened the day at $65.31 as compared to the previous trading day's close of $67.21. Other companies within the Energy industry that declined today were:
GeoPetro Resources Company (
GPR), down 42.9%,
Key Energy Services (
KEG), down 16.8%,
FX Energy (
FXEN), down 8.8% and
Whiting USA Trust I (
WHX), down 8.6%.
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National Oilwell Varco, Inc. provides equipment and components for oil and gas drilling and production; oilfield services; and supply chain integration services to the upstream oil and gas industry worldwide. National Oilwell Varco has a market cap of $28.7 billion and is part of the basic materials sector. The company has a P/E ratio of 11.5, below the S&P 500 P/E ratio of 17.7. Shares are down 1.7% year to date as of the close of trading on Thursday.
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, impressive record of earnings per share growth, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.
On the positive front,
Newpark Resources (
NR), down 16.0%,
Torch Energy Royalty (
TRU), down 13.2%,
Basic Energy Services (
BAS), down 6.1% and
Superior Energy Services (
SPN), down 6.0% , were all gainers within the energy industry with
Chevron (
CVX) 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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