National-Oilwell Varco, Inc. (NYSE:NOV)
It’s been called by some investors as the only energy company you’ll ever need. Those in the industry sometimes refer to it as “No Other Vendor,” because it sells virtually everything the industry needs. No matter what you call it, National-Oilwell Varco, Inc. (NYSE:NOV) is the king of oil-field equipment.
What’s a bit different here is that the company is actually reasonably priced, if not fairly cheap. At about 11 times earnings, the company is trading at about a third of the earnings multiple of FMC Technologies, Inc. (NYSE:FTI) and Core Laboratories N.V. (NYSE:CLB). This is likely a reason why it has been one of Warren Buffett’s favorite energy companies lately. The only difference here is the growth rate, as both of those companies are projected to grow faster that NOV. Still, National-Oilwell Varco, Inc. (NYSE:NOV) is a dominant company trading at a cheap price, and would be an even more compelling buy if the price of oil falls any further.
Key Foolish takeaway
Having a wish list of great stocks to buy is one of the best things to be doing in a volatile market. Sometimes, the market can hand you a gift, and you just have to be ready for it. Now that I’ve shared my list, I’d love to hear what oil stocks are on your watch list. Drop me a note in the comment box below.
The article 3 Energy Stocks I Really Want to Buy originally appeared on Fool.com and is written by Matt DiLallo.
Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool recommends FMC Technologies and National Oilwell Varco. The Motley Fool owns shares of National Oilwell Varco.
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