NOV (NOV) shares moved after the company reported second quarter 2026 results that showed net income of US$112 million on US$2,134 million in sales, alongside guidance for third quarter revenues to be flat to up 2% year over year.

The latest earnings release appears to have reinforced interest in NOV, with the share price at US$20.70 and a 1 month share price return of 9.58%. Over the past year, the stock has delivered a 78.45% total shareholder return, which points to strong recent momentum.

If NOV's move around earnings has your attention, this can be a good moment to widen your research and look at 37 power grid technology and infrastructure stocks

After NOV's strong 1 year run and the latest earnings jump, the key issue now is more basic. Does today’s price still leave meaningful upside on the table, or has most of the opportunity already played out in the stock?

Most Popular Narrative: 20.4% Undervalued

The most followed narrative for NOV suggests a fair value of $26 per share, compared with the latest close at $20.70. That gap reflects a view that the current price does not fully capture longer term earnings potential if the narrative plays out as framed.

The company's growing role in renewable and offshore wind infrastructure positions it as an early leader in the global energy transition equipment market, potentially unlocking a new, durable revenue stream that supports greater earnings resiliency and long-term margin expansion.

Curious what has to happen for NOV to reach that higher fair value? The narrative leans heavily on rising earnings, firmer profit margins, and a richer mix of offshore and energy transition work. The real interest lies in how those pieces are modeled together and what kind of long run profitability they imply. That detail only shows up when you review the full narrative behind the number.

Result: Fair Value of $26 (UNDERVALUED)

However, NOV's upbeat narrative still faces real tests if energy transition policies curb long term oilfield demand or if rising input costs continue to pressure margins.

Another View: NOV Looks Expensive On Earnings

The DCF work and bullish NOV narrative point to undervaluation around $26 per share. Yet on a simple P/E check, the story looks very different. NOV trades on about 77.7x earnings versus 26.3x for the US Energy Services industry, a 27.8x peer average and a fair ratio of 27.9x. That gap suggests investors today are paying a much higher price for each dollar of earnings, which raises the question of how much execution risk you are comfortable with.

Next Steps

With NOV's mix of optimism and concern in focus, this is a good moment to review the data yourself and stress test the investment case. To weigh both sides in one place, start with the 2 key rewards and 3 important warning signs

Looking for more investment ideas beyond NOV?

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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.