National Oilwell Varco Inc. (NOV): Today's Featured Energy 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 Energy industry higher today making it today's featured energy winner. The industry as a whole closed the day down 0.2%. By the end of trading, National Oilwell Varco rose $1.08 (1.6%) to $69.98 on average volume. Throughout the day, 4,227,346 shares of National Oilwell Varco exchanged hands as compared to its average daily volume of 3,950,700 shares. The stock ranged in a price between $68.24-$70.02 after having opened the day at $68.43 as compared to the previous trading day's close of $68.90. Other companies within the Energy industry that increased today were: Houston American Energy Corporation ( HUSA), up 17.7%, Quicksilver Resources ( KWK), up 10.9%, Vantage Drilling ( VTG), up 5.5% and Recovery Energy ( RECV), up 4.6%.
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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 $29.6 billion and is part of the basic materials sector. The company has a P/E ratio of 12.4, below the S&P 500 P/E ratio of 17.7. Shares are up 0.8% year to date as of the close of trading on Thursday. 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, attractive valuation levels, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, InterOil Corporation ( IOC), down 7.6%, Lucas Energy ( LEI), down 7.0%, FX Energy ( FXEN), down 6.4% and Camac Energy ( CAK), down 5.2% , were all laggards within the energy industry with Halliburton Company ( HAL) being today's energy industry laggard.

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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