WTI crude oil for February delivery was falling 4.2% to $50.46 a barrel Monday afternoon. Brent crude oil for February delivery was falling 5.4% to $53.37 a barrel.
Oil prices continued to fall due to global surplus and lackluster demand, according to Reuters. Oil output in Russia hit post-Soviet highs of an average of 10.58 million barrels a day in 2014, which helped drive oil prices down.
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"The easiest path for oil is down," Carsten Fritsch, senior oil and commodities analyst at Commerzbank told Reuters. "Almost all market news and the fundamental backdrop are negative and it is difficult to see much upside at the moment."
TheStreet Ratings team rates NATIONAL OILWELL VARCO INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate NATIONAL OILWELL VARCO INC (NOV) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- NOV's revenue growth has slightly outpaced the industry average of 16.1%. Since the same quarter one year prior, revenues rose by 17.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- NOV's debt-to-equity ratio is very low at 0.15 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 1.19, which illustrates the ability to avoid short-term cash problems.
- NATIONAL OILWELL VARCO INC has improved earnings per share by 15.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NATIONAL OILWELL VARCO INC reported lower earnings of $5.16 versus $5.83 in the prior year. This year, the market expects an improvement in earnings ($6.02 versus $5.16).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Energy Equipment & Services industry average. The net income increased by 9.9% when compared to the same quarter one year prior, going from $636.00 million to $699.00 million.
- You can view the full analysis from the report here: NOV Ratings Report