Use Market Weakness to Buy This Strong Oil Stock

Accumulation in NOV has been strong despite adverse conditions in the broader market

   

National Oilwell Varco (NOV) — This oil and gas drilling equipment and services company is renowned as the biggest, most stable and highest quality acquisition-minded company in its industry. S&P rates it a “buy” and expects demand for deepwater equipment will rise and “service intensity for onshore shale plays should remain strong.” Consensus estimates are for earnings of $6.13 per share for 2014 and $6.96 for 2015. Analysts’ mean price target is $89.69. The stock retreated from its November 2013 high at $84.71 to its bullish support line, now at $75. Since January, NOV has traded in a bull channel with support at $75 and resistance at $80. Accumulation has been strong even under adverse conditions in the broader market. The general market weakness might provide us with a bargain. MACD is positive, but momentum is falling, which could trigger a buy at $76 with a trading target of $84. The long-term target is $93. NOV Chart Click to Enlarge Chart Key


Article printed from InvestorPlace Media, http://investorplace.com/2014/04/trade-day-national-oilwell-varco-nov-2/.

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