First Eagle is Betting on National-Oilwell Varco (NOV) Stock

Alex Smith
·3 min read

First Eagle Investment Management recently released its Q3 2020 Investor Letter, a copy of which you can download here. The First Eagle Global Fund A Shares posted a return of 5.64% for the third quarter (without sales charge), underperforming its benchmark, the MSCI World Index which returned 7.93% in the same quarter. You should check out First Eagle's top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, First Eagle highlighted a few stocks and National-Oilwell Varco Inc (NYSE:NOV) is one of them. National-Oilwell Varco Inc (NYSE:NOV) is an oilfield equipment manufacturer and technology provider. Year-to-date, National-Oilwell Varco Inc (NYSE:NOV) stock lost 67.7% and on October 29th it had a closing price of $8.10. Here is what First Eagle said:

"Shares of Texas-based National Oilwell Varco declined during the quarter. Energy producers—particularly American shale drillers—were forced to cut budgets in the face of slumping oil prices, reducing the company’s business in the process. Though oil production appears unlikely to pick up meaningfully in the near term, servicers like National Oilwell Varco may be able to take advantage of consolidation opportunities in what may become a structurally improved environment."

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construction, drill, drilling, energy, equipment, exploration, fuel, gas, gasoline, holland, industrial, industry, maintenance, ocean, offshore, oil, petroleum, plant, platform, port, power, production, pump, refinery, rig, rotterdam, sea, sky, steel, technology, tower, well

Copyright: 1971yes / 123RF Stock Photo

In Q2 2020, the number of bullish hedge fund positions on National-Oilwell Varco Inc (NYSE:NOV) stock increased by about 3% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in NOV's growth potential. Our calculations showed that National-Oilwell Varco Inc (NYSE:NOV) isn't ranked among the 30 most popular stocks among hedge funds.

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Video: Top 5 Stocks Among Hedge Funds

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Disclosure: None. This article is originally published at Insider Monkey.