National Oilwell Varco
Goldman Sachs recently issued a note to clients, identifying what it believed are the 40 most undervalued stocks on the market at present.
Three of the most appealing stocks on this list are in the generally undervalued oil & gas drilling and exploration sector.
Oil & gas drilling and exploration is a sector that will always be in constant demand. Indeed, the sector is extremely strong currently, as of October 2012, there more »
The oil and gas equipment and service industry comprises suppliers of equipment for oil and natural gas extraction. These days it’s not easy to obtain oil; according to Barclays global E&P spending update, oil and gas companies will be spending $678 billion in 2013. Recently companies have started boosting oil and gas production through the use of technologically efficient drilling methods, which would lead to an increase in more »
A bass voice solemnly intones, "In a world where defensive stocks are at all time highs, P/Es are stretched to the breaking point, and the best performers are overbought one investment banker has the courage to list 40 cheap stocks."
Goldman Sachs came out on August 7 with its list of the top 40 cheapest stocks and the ones with the most upside were overwhelmingly oil and gas stocks more »
After making a big investment in Oil States International (NYSE: OIS) back in May, is activist hedge fund Jana Partners any closer to a breakthrough? Jana has over a 9% stake in Oil States and believes the company is undervalued.Jana's real thesis? The company needs to separate its accommodations segment from its other divisions and form a Real Estate Investment Trust (REIT) for accommodations.Billionaire David Einhorn of more »
I recently took a trip to my neighborhood book store and perused the business section. As I went through the stacks of books, I was amazed at the sheer volume of text available on "investing like Warren Buffett."
Buffett, who has grown his Berkshire Hathaway (NYSE: BRK-B) into an investment empire, is someone all investors should emulate. But is it really that hard to invest like Buffett?
Buffett seems to more »
For two quarters in a row National Oilwell Varco (NYSE: NOV) has reported a decline in earnings coupled with an increase in revenue. In the second quarter the company posted 18% year-over-year revenue growth and a record backlog of orders, but adjusted EPS declined to $1.33 from $1.46 one year ago. Is this a short-term problem, or should long-term investors be worried?
A flurry of acquisitions
National Oilwell more »
Over the next five years, it is expected that there will be a strong demand for deepwater and ultra-deepwater (UDW) rigs, as major oil and gas producers increasingly look towards offshore production in water exceeding depths of 5,000 feet. Despite this being a relatively high-risk area of operation, producers hope that the increased danger will be offset by larger and more lucrative hydrocarbon reserves.
Indeed, as of October 2012 more »
The oil and gas equipment and service industry has historically experienced significant volatility due to lower oil and gas prices.
Demand for oil and gas services and products depends primarily upon the level of activity in the oil and gas industry worldwide. High levels of drilling and well remediation activity generally drive demand for the products and services used to drill and remediate oil and gas wells.
High levels of more »
In this market, it is becoming hard to find companies that are undervalued. In particular, with the market reaching all-times highs, valuations are becoming somewhat distorted and value is becoming more and more hidden.
However, there is one valuation method that gives a good indication of how the stock is valued compared to the whole market and risk-free bonds, allowing for a more comprehensive evaluation.
A company's earnings yield more »
Ken Fisher is a famed investor, and the son of investing icon Philip Fisher. Through his best selling book Super Stocks and his track record at his firm, Fisher Investments, Fisher has established himself as a growth stock authority.
In his aforementioned book Super Stocks, Mr. Fisher introduced the investing world to a new valuation metric, the price-to-sales ratio. Since the days of Ben Graham investors had happily measured price more »
This is an overview of five oilfield-services stocks, as chosen by way of the CAPS Community screener as part of the broader energy sector. The parameters chosen were as follows:
1. Long-term debt-to-equity < 100%
2. EPS growth rate last three years >0
3. P/E ratio between 10.0 and 15.0
The resulting firms were those with healthy balance sheets and a recent history of earnings growth. They are more »
Despite a boom in oil and gas activity in the onshore U.S., Halliburton (NYSE: HAL) did not report particularly strong results in the first quarter of 2013. Despite the fact that overall revenue increased somewhat versus a year earlier, costs rose considerably and as a result, after adding back the company’s loss contingencies, we get that pre-tax income decreased by over 30%.
Cash flow from operations did even more »
While we don’t recommend blindly following hedge fund activity from 13F filings, we do consider these filings potentially useful for many investors. The most popular small cap stocks among hedge funds, as determined by our analysis, generate an average excess return of 18 percentage points per year (learn more about imitating hedge funds' small cap picks).
We also like to apply traditional stock screens, including the traditional value criteria more »
Now that first quarter earnings season has died down, analysts get the opportunity to get a closer look at many hedge funds’ 13F filings, which disclose institutional managers’ positions quarter by quarter. First Eagle Investment Management recently released its 13F outlining its holdings from Q1 2013. We use this information as the basis of our small-cap portfolio strategy, a system that has returned over 38% since we made it public more »
Five months ago, I laid out the argument for why National Oilwell Varco (NYSE: NOV) is a “Top 10 Stock" for 2013 and beyond. Thus far, this thesis is off to a slow start as shown by National Oilwell Varco’s underperformance to both its peers in the oilfield services industry and the S&P 500:
In the first piece that I wrote on the subject of finding undervalued stocks in the S&P 500 based on low valuations, I initially believed that opportunities would be few-and-far between. However, it appears that there is actually a large number of companies that are trading at astonishingly low valuations in relation to the rest of their sectors, which spurred me to write another post on the subject.
Where more »
It may seem absurd for me to make this prediction but I believe that despite current volatility, the market actually has further left to run.
There are currently many different analysts all stating why they believe the market is overvalued and due for a pullback, however, a quick evaluation of the market by one of the simplest methods around quickly shows that the market could actually be undervalued.
According to more »
The International Energy Agency expects oil demand to increase by a mere 0.9% this year. European demand and growth have been meager at best, while the mantle of global consumption is largely being carried forward by China. China's total oil demand is expected to grow by 3.8% - a value less than initially calculated. Invariably, this will provide expected rising prices for the remaining year due to the more »
Energy experts have been bending our ears about the unfolding natural gas revolution in the U.S., for quite some time now. Not without a reason. Technological advancements in the way natural gas is being extracted from the earth have triggered an unprecedented surge in domestic production.
Portfolio manager Salman Ebrahim recently outlined eight price constraints on National Oilwell Varco here. As these dissipate this year, NOV’s solid long-term prospects will take center stage.
The first constraint was low 2012 operating cash flow. This was due to increased inventory to meet anticipated demand for repairs of rigs built at the beginning of the current cycle which come due for their five-year repairs this year. If anything more »
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