National Oilwell Varco Inc. (NOV): Today's Featured Basic Materials Winner

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 Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole closed the day up 0.3%. By the end of trading, National Oilwell Varco rose $1.16 (1.7%) to $68.04 on average volume. Throughout the day, 3,345,827 shares of National Oilwell Varco exchanged hands as compared to its average daily volume of 4,233,900 shares. The stock ranged in a price between $66.94-$68.74 after having opened the day at $67.16 as compared to the previous trading day's close of $66.88. Other companies within the Basic Materials sector that increased today were: Tasman Metals ( TAS), up 29.0%, USEC ( USU), up 25.7%, James River Coal Company ( JRCC), up 18.4% and Uranium Resources ( URRE), up 10.9%.
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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 $28.0 billion and is part of the energy industry. The company has a P/E ratio of 11.8, below the S&P 500 P/E ratio of 17.7. Shares are down 2.2% year to date as of the close of trading on Friday. Currently there are 17 analysts that rate National Oilwell Varco a buy, no analysts rate it a sell, and 3 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 and attractive valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, GeoPetro Resources Company ( GPR), down 20.0%, North American Palladium ( PAL), down 14.7%, Minco Gold Corporation ( MGH), down 12.9% and Kimber Resources ( KBX), down 7.7% , were all laggards within the basic materials sector with Gulfport Energy Corporation ( GPOR) being today's basic materials sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

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