NOV (NOV): Assessing Valuation Following Soiltech Partnership for Drilling Waste Management Expansion

NOV (NOV) has entered into a Memorandum of Understanding with Soiltech to team up on selected global projects in drilling waste management. The two companies will work together to develop customized solutions for clients by leveraging their respective technologies. This collaboration has raised investor interest in NOV’s potential for broader service offerings and market expansion.

See our latest analysis for NOV.

Momentum appears to be building for NOV, with a 30-day share price return of 22.7% and a 90-day share price gain of 29.2%. This likely reflects investor optimism following the Soiltech partnership and other recent initiatives. While the 1-year total shareholder return is a modest 2.4%, NOV’s five-year total return of 37.8% suggests its long-term holders have still seen solid gains.

If this collaboration has you thinking broadly about growth stories in the energy industry, it might be the perfect moment to discover fast growing stocks with high insider ownership.

Given NOV’s recent gains, improving fundamentals, and a modest discount to analyst targets, investors are left to consider whether the stock is still undervalued and positioned for further upside, or if the market is already factoring in the expected growth.

Most Popular Narrative: 2.7% Undervalued

With NOV’s fair value pegged at $16.15, just above the recent close of $15.72, market watchers are debating whether even more upside is justified given the latest financial projections.

The global rollout of unconventional resource development (outside North America) requires large-scale infrastructure and advanced drilling equipment. This provides NOV with expanded market opportunities as international E&Ps replicate shale success, which could lead to higher equipment and aftermarket sales. Sustained investment in energy infrastructure, including LNG and gas processing driven by global energy security needs and rising energy demand in developing markets, supports long-term growth in NOV’s composite pipe, process systems, and related offerings. This enhances recurring and project-based revenues.

Read the complete narrative.

Curious about the numbers behind that headline fair value? This narrative is built on bold global revenue ambitions and profit margin boosts, but only a handful of analysts know the full story. See for yourself what high-stakes assumptions are turning heads on Wall Street.

Result: Fair Value of $16.15 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, continued margin pressure from trade policies and sluggish activity in key markets could quickly challenge the current optimism around NOV’s valuation outlook.

Find out about the key risks to this NOV narrative.

Build Your Own NOV Narrative

If you want to challenge the consensus or would rather dig into the details yourself, you can shape your own view of NOV in just minutes. Do it your way

A great starting point for your NOV research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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