COM - NOV: A Top Oil And Gas Services Pick Under Quiet Accumulation
2024-07-09 17:28:25 ET
Summary
- NOV Inc. is still suffering from the lingering effects of the 2020 oil/gas bust, with investors shunning the stock, and operating results only slowly improving.
- Using financial ratio analysis, shares are trading at a 30% to 40% discount to long-term valuation averages.
- One surprise for Wall Street investors this year or next may be a large spike in energy prices, as relative pricing remains depressed.
- Stronger technical momentum has developed since early June in NOV Inc. shares, which is indicative of accumulation action.
NOV Inc. ( NOV ) was hit hard by low crude oil and natural gas prices during the once-in-a-lifetime bust in 2020. To be truthful, it is still reaching for recovery in 2024. However, if you are searching for portfolio exposure in the oil & gas industry, NOV looks to be an interesting choice. The stock valuation is on the low side historically, and operations are becoming quite profitable again. I just bought a position, as a number of technical trading indicators are trending higher more aggressively recently. Let's review the basic buy logic....
NOV: A Top Oil And Gas Services Pick Under Quiet Accumulation