In the following video, Fool analysts Jim Mueller and Austin Smith talk about what investors in National Oilwell Varco should be looking for.

With companies like NOV, which has very broad exposure to the energy sector, it can be difficult for investors to know what they should focus on. Jim, however, sees three key areas for NOV.

The first is the price of oil. As oil prices rise, the Big Oil companies want to drill more wells, increasing business for NOV. But when prices fall, the opposite happens and demand for NOV's products shrinks.

The second is NOV's backlog. Right now, NOV has a backlog of orders to execute worth about one year's revenue. Investors want to see that backlog growing or holding steady.

The last area is growth in non-fossil-fuel energy. Fossil fuels are not environmentally friendly, and the move toward wind, solar, and electric vehicles will cut into the demand for oil long-term

Austin Smith owns shares of National Oilwell Varco and Ford. Jim Mueller owns shares of Ford and National Oilwell Varco and has options on Ford. The Motley Fool owns shares of Ford and ExxonMobil. Motley Fool newsletter services recommend Chevron, Ford, and National Oilwell Varco. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.