27 Jun

National Oilwell Varco Has the Most ‘Sell’ Ratings

WRITTEN BY Alex Chamberlin FEATURED IN Wall Street Ratings

Analysts’ recommendations for National Oilwell Varco

National Oilwell Varco (NOV) has the highest “sell” recommendations assigned by sell-side analysts in the OFS (oilfield equipment and services) industry. Approximately 10% of the analysts tracking National Oilwell Varco have recommended a “sell” or some equivalent as of June 25. Approximately 76% of the analysts recommended a “hold,” while 14% recommended a “buy” or some equivalent. Analysts’ consensus target price for National Oilwell Varco was ~$37.3 as of June 25. Currently, National Oilwell Varco is trading near $41.3, which implies 10% downside over the next 12 months at the current price.

National Oilwell Varco Has the Most ‘Sell’ Ratings

How the rating changed

On March 25–June 25, the percentage of analysts recommending a “sell” or some equivalent for National Oilwell Varco decreased from 13% to 10%. Analysts’ “hold” recommendations increased during the same period. A year ago, ~9% of the sell-side analysts recommended a “sell” for National Oilwell Varco.

Some analysts are bearish 

  • There could be a negative spill-over effect due to the cancellation of a large order in the Ca Rong Do project in Vietnam in the first quarter.
  • There’s weak flexible pipe demand.
  • National Oilwell Varco’s management expects volatility in the Rig Aftermarket segment due to an oversupply of land rigs and equipment inventory. Also, the effect of discounts given to customers and the slow inventory-to-cash conversion could have a negative impact on National Oilwell Varco’s margin.

OFS companies with the highest “buy” ratings

Approximately 91% of the sell-side analysts recommended a “buy” for Halliburton (HAL) as of June 25. Approximately 89% of the sell-side analysts recommended a “buy” for Helix Energy Solutions Group (HLX), while 83% recommended a “buy” for U.S. Silica Holdings (SLCA) as of June 25. To learn more, read Top Five Oilfield Equipment and Services Companies.

Next, we’ll review analysts’ ratings for TechnipFMC (FTI).

Latest articles

Hibbett Sports (HIBB) stock surged 22.3% as of 1:54 PM ET today as the company reported impressive results for fiscal 2019's fourth quarter, which ended on February 2.

Wall Street analysts expect a potential upside of 21.63% for Alexion Pharmaceuticals based on the stock's closing price on March 21.

Today, we got another round of dismal data points from Europe (VGK)(EZU). According to a Markit survey, Germany’s (EWG) March PMI Composite Output Index fell to a 69-month low of 51.5.

On March 21, US crude oil’s implied volatility was 24.9%, which was 6.7% below its 15-day average. Usually, lower implied volatility supports oil prices.

The overall cannabis sector took a hit today amid the broader market's declines. The volatility index (VIX) jumped 17.9%, and the cannabis sector is more sensitive than the market.

The tech-heavy NASDAQ Composite Index (QQQ) is on track to post its 12th weekly gain in 13 weeks.