Barron's sees 30% upside for National Oilwell Varco

|About: National Oilwell Varco, Inc. (NOV)|By:, SA News Editor

Shares of National Oilwell Varco (NOV) may be trailing the performance of the broad market over the past two years, but its "growth prospects remain plenty bright [thanks to] ramping orders for aftermarket parts and replacement orders for aging drill fleets," Jack Hough writes.

There are a number of catalysts for the Houston-based company going forward, including a spinoff of the distribution business, a move Hough says could "unlock a higher valuation and potential for fast dividend growth."

Falling operating margins should begin to rise this year and next, while FPSO sales and the parts business "could help offset any cooling in demand for offshore drilling rigs."

Ultimately, the shares look cheap at 12.7X 2014 estimates, Barron's says.