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 0.7%. By the end of trading, National Oilwell Varco rose $1.05 (1.5%) to $71.49 on average volume. Throughout the day, 3,271,984 shares of National Oilwell Varco exchanged hands as compared to its average daily volume of 3,859,900 shares. The stock ranged in a price between $70.55-$71.97 after having opened the day at $70.55 as compared to the previous trading day's close of $70.44. Other companies within the Basic Materials sector that increased today were:
Prospect Global Resources (
PGRX), up 59.9%,
China Gengsheng Minerals (
CHGS), up 26.7%,
BMB Munai (
BMBM), up 25.0% and
Gevo (
GEVO), up 19.6%.
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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 $29.7 billion and is part of the energy industry. The company has a P/E ratio of 12.5, below the S&P 500 P/E ratio of 17.7. Shares are up 3.1% year to date as of the close of trading on Monday. Currently there are 16 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,
Crosshair Energy (
CXZ), down 18.4%,
Andatee China Marine Fuel Services Corporat (
AMCF), down 13.2%,
Banro Corporation (
BAA), down 9.9% and
China Gerui Advanced Materials Group (
CHOP), down 7.8% , were all laggards within the basic materials sector with
Randgold Resources (
GOLD) 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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