5-Star Stocks Poised to Pop: National Oilwell Varco

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil-field services specialist National Oilwell Varco (NYS: NOV) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at National Oilwell's business and see what CAPS investors are saying about the stock right now.

National Oilwell facts

Headquarters (Founded)

Houston (1862)

Market Cap

$30.2 billion

Industry

Oil and gas equipment and services

Trailing-12-Month Revenue

$13.57 billion

Management

CEO Merrill Miller, Jr. (since 2001)

CFO Clay Williams (since 2005)

Return on Equity (Average, Past 3 Years)

11.6%

Cash/Debt

$3.87 billion / $512 million

Dividend Yield

0.6%

Competitors

Baker Hughes

Schlumberger (NYS: SLB)

Weatherford International (NYS: WFT)

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98.5% of the 3,364 members who have rated National Oilwell believe the stock will outperform the S&P 500 going forward. These bulls include timmnsa and All-Star dspl4Js, who is ranked in the top 5% of our community.

Just last month, timmnsa listed several of National Oilwell's positives:

Well run, major player. Oil will surely stay a precious commodity for quite some time to come. Recent [$]1.5 billion deal with Brazil is largest in company history. ... Coming merger with Ameron adds some diversity.

National Oilwell even sports a comforting debt-to-equity of just 3%. That's much lower than that of competitors like Baker Hughes (25%), Schlumberger (36%), and Weatherford (77%).

CAPS All-Star dspl4Js elaborates on the National Oilwell bull case:

Punished by global recession fears. There will never be enough oil, with the world population increasing at the rate it is there will only be more need for the most widely used energy source. Highly profitable, well managed, growth prospect. Beaten down stock not a broken company.

What do you think about National Oilwell, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to trackNational Oilwell?Add it to your watchlist.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of National Oilwell. Motley Fool newsletter services have recommended buying shares of National Oilwell. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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