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

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 higher today making it today's featured basic materials winner. The sector as a whole closed the day down 0.5%. By the end of trading, National Oilwell Varco rose $0.93 (1.1%) to $82.62 on average volume. Throughout the day, 2,804,457 shares of National Oilwell Varco exchanged hands as compared to its average daily volume of 2,761,600 shares. The stock ranged in a price between $81.00-$82.66 after having opened the day at $81.37 as compared to the previous trading day's close of $81.69. Other companies within the Basic Materials sector that increased today were: REX American Resources ( REX), up 22.3%, Quaterra Resources ( QMM), up 14.0%, Clayton Williams Energy ( CWEI), up 9.3% and Mountain Province Diamonds ( MDM), up 8.9%.

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 $34.9 billion and is part of the energy industry. The company has a P/E ratio of 14.9, below the S&P 500 P/E ratio of 17.7. Shares are up 19.2% year to date as of the close of trading on Monday. Currently there are 13 analysts that rate National Oilwell Varco a buy, 1 analyst rates 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 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 somewhat disappointing return on equity.

On the negative front, Augusta Resource Corporation ( AZC), down 14.6%, Timmins Gold ( TGD), down 9.7%, James River Coal Company ( JRCC), down 9.2% and Exeter Resource Corporation ( XRA), down 8.9% , were all laggards within the basic materials sector with E.I. du Pont de Nemours & Company ( DD) 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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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