National Oilwell Varco (NOV) Leading In Pre-Market Activity

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.

Trade-Ideas LLC identified National Oilwell Varco ( NOV) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified National Oilwell Varco as such a stock due to the following factors:

  • NOV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $243.3 million.
  • NOV traded 19,070 shares today in the pre-market hours as of 9:08 AM.
  • NOV is up 4.2% today from Friday's close.

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More details on NOV:

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. The stock currently has a dividend yield of 1.3%. NOV has a PE ratio of 14.6. Currently there are 11 analysts that rate National Oilwell Varco a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for National Oilwell Varco has been 3.0 million shares per day over the past 30 days. National Oilwell Varco has a market cap of $33.6 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.22 and a short float of 2% with 2.81 days to cover. Shares are up 15.1% year to date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant 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.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 3.2%. Since the same quarter one year prior, revenues rose by 18.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • NOV's debt-to-equity ratio is very low at 0.20 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.20, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has significantly increased by 243.87% to $364.00 million when compared to the same quarter last year. In addition, NATIONAL OILWELL VARCO INC has also vastly surpassed the industry average cash flow growth rate of 188.68%.
  • NATIONAL OILWELL VARCO INC's earnings per share declined by 12.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, NATIONAL OILWELL VARCO INC increased its bottom line by earning $5.83 versus $4.69 in the prior year. For the next year, the market is expecting a contraction of 8.4% in earnings ($5.34 versus $5.83).

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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