Use Market Weakness to Buy This Strong Oil Stock

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

   
Use Market Weakness to Buy This Strong Oil Stock

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. 04 14 14 nov 300x191 Use Market Weakness to Buy This Strong Oil Stock Click to Enlarge chart key 300x84 Use Market Weakness to Buy This Strong Oil Stock


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