NOV Stock Analysis — NOV Inc.
Sector: Energy Equipment
AI Verdict
NOV trades at a premium to the sector on next year’s earnings, but if its moat in drilling technology delivers the forecasted turnaround, the current price is cheap for the explosive growth analysts expect.
Competitive Moat
NOV manufactures specialized equipment for oil and gas drilling, with a defensible position built on decades of proprietary engineering and entrenched customer relationships in rig technology. Its scale and installed base create high switching costs for energy producers reliant on NOV’s support and parts.
Summary
A sharp swing in earnings is in focus as NOV’s forward P/E drops to 19.4x on the back of a forecasted 160.8% jump in EPS.
Where It Stands
NOV trades at 19.4x next year’s earnings, well above the energy sector median of 12x, but this is paired with analyst expectations for 160.8% EPS growth after a year of -1.4% revenue decline.
Key Metrics
- Trailing P/E: 50.7x
- Forward P/E: 19.4x
- PEG Ratio: 0.32
- Earnings Growth: +1.6%
- Revenue Growth: -0.0%
- Dividend Yield: 0.02%
- 52-Week High: $20.93
- 52-Week Low: $11.64
Analyst Consensus
10 Buy · 13 Hold · 1 Sell (24 analysts)
Bull Case
A 160.8% expected EPS jump makes the 19.4x forward P/E look cheap for the growth on offer if the turnaround materializes.
Bear Case
If the forward P/E reverts to the sector median of 12x and growth disappoints, the stock could see a 38% valuation haircut from here.
Catalyst to Watch
Watch quarterly earnings for evidence that the triple-digit EPS growth is actually materializing, as any miss could trigger a sharp rerating.