The end of the technical rebound appears close for stocks in National Oilwell Varco following the recovery of the past few days.
Summary
● The company has poor fundamentals for a short-term investment strategy.
Weaknesses
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● The group usually releases earnings worse than estimated.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 138.4 times its estimated earnings per share for the ongoing year.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● Revenue estimates are regularly revised downwards for the current and coming years.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
● For the past year, analysts have significantly revised downwards their profit estimates.
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NOV Inc. is an independent equipment and technology provider to the global energy industry. The Companyâs segments include Energy Equipment, and Energy Products and Services. Its Energy Products and Services segment provides a variety of technologies used primarily to perform drilling and well completion operations and offers services that optimize their performance. Its Energy Products and Services segment designs, manufactures, rents, and sells equipment and products for drilling, intervention, completion, and production activities, including drill bits, downhole tools, premium drill pipe, drilling fluids, managed pressure drilling, integral and weld-on connectors for conductor strings and surface casing, completion tools, and artificial lift systems. Its Energy Equipment segment manufactures and supports the capital equipment and integrated systems needed for oil and gas exploration and production, both onshore and offshore, as well as for other marine-based and industrial markets.