Thursday, June 27, 2013

Why National Oilwell Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oilfield services specialist National Oilwell Varco (NYSE: NOV  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at National Oilwell and see what CAPS investors are saying about the stock right now.

National Oilwell facts

Headquarters (founded)

Houston (1862)

Market Cap

$30.6 billion

Industry

Oil and gas equipment and services

Trailing-12-Month Revenue

$21.0 billion

Management

Chairman/CEO Merrill Miller Jr.

President/COO Clay Williams

Return on Equity (average, past 3 years)

11.7%

Cash/Debt

$2.4 billion / $4.4 billion

Dividend Yield

1.5%

Competitors

Halliburton

Schlumberger

Weatherford International

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 99% of the 4,106 members who have rated National Oilwell believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star RedandBlack, tapped the stock as a particularly attractive bargain opportunity: "Energy stocks have been beaten lately and [National Oilwell] had some issues in 2012 with contracting margins but the pipeline remains strong and I think margins will improve in 2014 and beyond. They have made numerous acquisitions the last few years which should be accretive going forward or I've misjudged this one."

National Oilwell Varco is perhaps the safest investment in the energy sector due to its industry-dominating market share. This company is poised to profit in a big way; its customers are both increasing the number of new drilling rigs and updating aging fleets of offshore rigs. To help determine if it could be a good fit for your portfolio, you're invited to check out The Motley Fool's premium research report featuring in-depth analysis on whether NOV is a buy today. For instant access to this valuable investor's resource, simply click here now to claim your copy.

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