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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

National Oilwell Varco ( NOV) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day down 0.3%. By the end of trading, National Oilwell Varco fell $1.11 (-1.4%) to $78.01 on average volume. Throughout the day, 2,804,350 shares of National Oilwell Varco exchanged hands as compared to its average daily volume of 2,961,900 shares. The stock ranged in price between $77.81-$78.69 after having opened the day at $78.65 as compared to the previous trading day's close of $79.12. Other companies within the Basic Materials sector that declined today were: GeoPetro Resources Company ( GPR), down 27.5%, Enduro Royalty ( NDRO), down 13.0%, MagneGas Corporation ( MNGA), down 12.1% and Prospect Global Resources ( PGRX), down 10.9%.

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 $33.6 billion and is part of the energy industry. Shares are up 15.1% year to date as of the close of trading on Thursday. Currently there are 11 analysts that rate National Oilwell Varco a buy, 1 analyst rates it a sell, and 2 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 and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Andatee China Marine Fuel Services Corporat ( AMCF), up 61.8%, Kimber Resources ( KBX), up 16.7%, Kimber Resources ( KBXR), up 16.7% and GMX Resources ( GMXRQ), up 15.1% , were all gainers within the basic materials sector with Kodiak Oil & Gas ( KOG) being today's featured basic materials sector leader.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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