National-Oilwell Varco, Inc. (NOV), LMI Aerospace, Inc. (LMIA): Stocks Near 52-Week Lows Worth Buying

Huge shale deposit finds over the past decade are going to fuel a rapid expansion in oil and gas production. The only hold-up had been laying the pipeline, storage, and transmission infrastructure to accommodate such a large bump in production. With much of that infrastructure now in place, oil and gas service companies like National-Oilwell Varco, Inc. (NYSE:NOV) should be constrained only by the price of oil and gas. Seeing as how the gap between West Texas Intermediate and Brent crude has been narrowing, this leads to a high potential for even higher domestic oil production which would be a positive for National Oilwell.

Comparatively speaking, National-Oilwell Varco, Inc. (NYSE:NOV) isn’t particularly expensive, either. Earlier this year the company doubled its payout to shareholders to $0.26 per quarter from $0.13 because of its strong cash flow and still trades at just 11 times forward earnings. With shareholders finally getting their fair share of the pie and domestic energy demand almost certain to pick up, National Oilwell Varco is a name you should at least have on your Watchlist.

Foolish roundup
Sometimes the best values are the hidden gems that no one’s ever heard of before. By pushing outside the box for investing ideas you can often uncover stocks that trade for low multiples, have huge dividend yields, or simply sit at the precipice of a major industrywide shift.

The article 3 Stocks Near 52-Week Lows Worth Buying originally appeared on Fool.com.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong. The Motley Fool owns shares of, and recommends, National Oilwell Varco.

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