NOV (NOV) has drawn fresh attention after its second quarter 2026 earnings, where revenue of US$2,134 million was slightly below last year while net income rose to US$112 million.

NOV's share price has risen 18.4% year to date, with a 7.35% 1 month share price return but some recent softness over the past week, while the 1 year total shareholder return of 64.05% points to stronger longer term momentum.

If NOV's recent move has you thinking about where else capital equipment demand could matter, it may be worth scanning 35 power grid technology and infrastructure stocks

NOV now trades at a price that sits well below both analyst targets and one intrinsic value estimate. With that gap in mind, how far from fair value does the stock really look after this latest run?

Most Popular Narrative: 9.2% Undervalued

NOV's most followed narrative places fair value at $21.40, above the last close of $19.43, which frames today’s price as a discount to that view.

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, enhancing recurring and project based revenues. (Revenue)

Want to see what is baked into that $21.40 fair value for NOV? The narrative leans on measured revenue growth, margin uplift and a lower future earnings multiple. The mix of slower top line assumptions and faster profit growth is not obvious from the headline numbers.

Result: Fair Value of $21.40 (UNDERVALUED)

However, investors still need to weigh risks for NOV, including possible delays to offshore and infrastructure projects, as well as pressure on margins from tariffs, inflation and aggressive pricing.

Another View On NOV's Valuation

While the narrative fair value of $21.40 suggests NOV is 9.2% undervalued, the current P/E of 72.9x tells a very different story. It sits well above the US Energy Services industry at 25.4x, peers at 34.8x, and the fair ratio of 27.1x, which points to meaningful valuation risk if sentiment cools.

These gaps do not rule out upside. However, they ask you to judge how much optimism is already in the price and how comfortable you are if the market moves closer to that fair ratio over time.

Next Steps

If this mix of optimism and concern around NOV feels familiar, it is worth checking the full picture for yourself and moving quickly while sentiment is fresh. You can see both sides of the story in our breakdown of 2 key rewards and 3 important warning signs

Looking For More Investment Ideas Beyond NOV?

If NOV has sharpened your interest in opportunities tied to real business quality, do not stop here. Use the tools available and keep your watchlist working harder.

• Zero in on companies that look mispriced relative to their fundamentals by scanning the 55 high quality undervalued stocks.
• Strengthen your income stream by reviewing the 9 dividend fortresses for stocks offering higher yields alongside stability.
• Protect your capital by focusing on resilience first and sorting opportunities through the 81 resilient stocks with low risk scores.

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.