StockStory analysts recommend selling NOV, citing three reasons for underperformance and pointing to a preferred alternative. Over the past five years, NOV's revenue grew at a compounded annual rate of 9.8%, below the firm's benchmark for the energy upstream and integrated energy sector. Its gross margin averaged 20.3% over the same period, which the analysts consider bottom-tier unit economics, and its free cash flow margin averaged just 3.4%, limiting reinvestment potential. The stock currently trades at 18.1 times forward price-to-earnings, or $18.63 per share, which the analysts view as pricing in too much good news. They suggest investors consider an endpoint security platform stock instead.
NOV Inc.Analyst recommendation to sell, citing weak revenue growth, low margins, and overvaluation.
NVIDIA Corporation