WFRD - NOV's Selloff On Last Week's Events Is Likely Overdone But Wait For The Dust To Settle
2024-02-05 10:34:37 ET
Summary
- NOV saw a double sell-off last week.
- The market got scared by Saudi dropping its capacity expansion plans and didn't appreciate NOV's North America revenue guidance either.
- Both concerns are overdone as the Saudi announcement will have little tangible impact while NOV's international business will make up for any North America weakness.
- I am neutral on the stock though until we see the corrective action is over.
Investment thesis
NOV Inc.'s ( NOV ) stock sold off twice last week, once on the news that Aramco is scrapping plans to expand capacity to 13 million barrels per day and the second time when the market reacted negatively to the company's muted North America guidance despite NOV actually beating earnings . ...
NOV's Selloff On Last Week's Events Is Likely Overdone, But Wait For The Dust To Settle