X
<

A Pre-Earnings Analysis of National Oilwell Varco's 1Q17

PART:
1 2 3 4 5 6 7 8 9
A Pre-Earnings Analysis of National Oilwell Varco's 1Q17 PART 1 OF 9

Reading National Oilwell Varco’s Stock Price on April 17

National Oilwell Varco’s stock price

In the past year, National Oilwell Varco (NOV) stock has risen 33% as of April 17, 2017. In the same period, it’s outperformed the VanEck Vectors Oil Services ETF (OIH), which has generated a return of 8%.

OIH is an ETF tracking an index of 25 oilfield equipment and services (or OFS) companies. The Energy Select Sector SPDR ETF (XLE), the broader energy industry ETF, has also produced a return of 8% in the past year. National Oilwell Varco has also outperformed the SPDR S&P 500 ETF (SPY), which has returned 12% in the same period.

Reading National Oilwell Varco’s Stock Price on April 17

Interested in NOV? Don't miss the next report.

Receive e-mail alerts for new research on NOV

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

The Dow Jones Industrial Average (DJIA-INDEX) has risen 15% in the past year. The energy sector makes up 6.3% of the DJIA-INDEX.

Crude oil price and rigs

In the past year, West Texas Intermediate (or WTI) crude oil’s price has recovered 32%. This rise partially explains OIH’s rise. The rise in crude oil has also prompted a US rig count revival, with the count rising 93% in the past year. 

Read the latest on crude oil in Market Realist’s US Crude Oil Struggling near $53: How Energy ETFs Are Doing.

Inorganic growth routes

NOV recently acquired Axiom Process. The acquisition is expected to improve NOV’s solids control portfolio. NOV and Maersk Drilling, a drilling rig operator, also recently entered into a five-year partnership wherein NOV will provide drilling equipment to seven of Maersk’s offshore floating rigs. Read more in Market Realist’s Is National Oilwell Varco’s Stock Price Gaining Steam?

What are NOV’s challenges in 2017?

National Oilwell Varco’s management expects the offshore energy market and parts of its international operations to remain challenging in 2017. Its capital equipment sales have been weak, resulting from a downturn in the energy market.

Series highlights

In this series, we’ll look at analysts’ estimates for NOV’s 1Q17 earnings, its value drivers, what various market indicators are suggesting, and what analysts recommend. We’ll start with Wall Street’s 1Q17 estimates for NOV.

X

Please select a profession that best describes you: