DNOW (DNOW) Remains a Value Stock Despite Rapid Growth
Momentum Investing Strategy: Momentum investors focus on "buying high and selling higher," avoiding traditional strategies like buying low and waiting for recovery, which can be risky due to potential loss of momentum in trending stocks.
DNOW Stock Analysis: DNOW has shown strong price momentum with a recent 9.8% increase and a favorable Momentum Score of B, indicating it is a good investment opportunity, especially as it trades at a reasonable valuation of 0.70 times its sales.
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Analyst Views on DNOW
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Tejara Capital Acquires New Position in DNOW
- New Investment Position: On February 5, Tejara Capital Ltd disclosed a new position in DNOW by acquiring 685,617 shares worth approximately $9.08 million, reflecting confidence in the company's long-term strategy.
- Asset Allocation Impact: This acquisition represents 2.14% of Tejara Capital's 13F reportable assets, indicating diversification in investments within the energy and industrial sectors, thereby enhancing portfolio stability.
- Financial Performance Highlights: DNOW reported $634 million in revenue for the third quarter, with EBITDA of $51 million and operating cash flow of $43 million, while carrying zero long-term debt, showcasing robust financial health.
- Market Outlook Analysis: DNOW's cash flow and debt-free structure provide flexibility for its $1.5 billion acquisition of MRC Global, expected to enhance the company's scale and product reach, thereby strengthening its competitive position in the market.
DNOW and Three Other Stocks Show Rising Cash Flows
- Cash Flow Growth: DNOW is projected to have a 20.5% earnings growth rate for 2026, with a consensus estimate revised upward by 8.7% over the past 30 days, indicating effective cash flow management that enhances its market competitiveness.
- Earnings Estimate Improvement: Pursuit Attractions' earnings per share estimates for 2025 and 2026 have increased by 1.6% and 10.3%, respectively, reflecting the company's ongoing efforts to attract customers and enhance service quality, which supports its robust growth in the tourism and hospitality sector.
- Oil and Gas Industry Outlook: Riley Exploration Permian's earnings per share estimates for 2025 and 2026 have been raised by 5.0% and 14.2%, respectively, showcasing the success of its drilling activities in Texas and New Mexico, thereby strengthening its position in the oil and gas market.
- Technological Innovation: RF Industries' fiscal 2026 earnings estimate was revised up by 22.9% in the past week, indicating strong demand in the telecom and data communications markets, further solidifying its leadership in global connectivity solutions.
DNOW Institutional Holdings Exceed 60%, Significantly Influencing Share Price
- Institutional Ownership Analysis: DNOW's institutional investors hold over 60% of the shares, indicating significant influence over the company's stock price and decision-making, reflecting professional investors' confidence in the firm.
- Major Shareholder Structure: The largest shareholder is BlackRock with a 9.5% stake, followed by Vanguard at 6.3%, highlighting the importance of large institutions in DNOW, which may also introduce greater market volatility risks.
- Insider Ownership Situation: Company insiders own shares worth approximately $29 million, indicating alignment of interests between management and shareholders, which can enhance market trust in the company.
- Public Ownership Proportion: The general public holds 39% of the shares, which, while not directly influencing decisions, still exerts a degree of sway over company operations, showcasing a broad investor base.
Daily Upgrade Report for Validea's Benjamin Graham Strategy - December 19, 2025
Validea's Value Investor Model: Today's upgrades for Validea's Value Investor model, based on Benjamin Graham's strategy, highlight DNOW Inc. as a mid-cap value stock with a rating increase from 71% to 86%, indicating strong interest due to its solid fundamentals and valuation.
Company Overview: DNOW Inc. is a leading provider of energy and industrial solutions, offering a wide range of products and services including pipe, valves, fittings, pumps, and engineered equipment, serving various markets such as oil and gas, chemical processing, and renewables.
Benjamin Graham's Influence: Benjamin Graham, known as the "Father of Value Investing," significantly impacted the investment world, mentoring notable investors like Warren Buffett and achieving impressive returns through his investment strategies during challenging economic times.
Validea's Research Service: Validea specializes in investment research by following the strategies of legendary investors, providing stock analysis and model portfolios aimed at long-term market outperformance.
Susquehanna Enhances Rating for DNOW (DNOW)
Analyst Upgrade: Susquehanna upgraded DNOW's outlook from Neutral to Positive, with a projected one-year price target of $17.34/share, indicating a potential upside of 39.61% from its current price of $12.42/share.
Institutional Ownership Trends: There are 629 funds reporting positions in DNOW, with a 1.13% increase in ownership over the last quarter, and total shares owned by institutions rose by 2.95% to 138,638K shares.
Fund Sentiment: The put/call ratio for DNOW is 0.34, suggesting a bullish sentiment among investors, while various funds have adjusted their holdings, with some increasing and others decreasing their portfolio allocations.
Revenue and Earnings Projections: DNOW's projected annual revenue is $2,503 million, reflecting a 2.92% increase, and the expected non-GAAP EPS is 1.28.
Susquehanna Upgrades DNOW Following MRC Acquisition, Signaling New Opportunities
Upgrade and Price Target: DNOW shares rose 8.3% after Susquehanna upgraded them to Positive from Neutral, setting a price target of $16, citing the company's enhanced position following the MRC Global acquisition.
Growth Opportunities: The acquisition is expected to provide increased scale, growth potential in energy and industrial markets, and a clean balance sheet for further mergers and acquisitions, alongside solid free cash flow for debt reduction and shareholder returns.
Tejara Capital Acquires New Position in DNOW
- New Investment Position: On February 5, Tejara Capital Ltd disclosed a new position in DNOW by acquiring 685,617 shares worth approximately $9.08 million, reflecting confidence in the company's long-term strategy.
- Asset Allocation Impact: This acquisition represents 2.14% of Tejara Capital's 13F reportable assets, indicating diversification in investments within the energy and industrial sectors, thereby enhancing portfolio stability.
- Financial Performance Highlights: DNOW reported $634 million in revenue for the third quarter, with EBITDA of $51 million and operating cash flow of $43 million, while carrying zero long-term debt, showcasing robust financial health.
- Market Outlook Analysis: DNOW's cash flow and debt-free structure provide flexibility for its $1.5 billion acquisition of MRC Global, expected to enhance the company's scale and product reach, thereby strengthening its competitive position in the market.
DNOW and Three Other Stocks Show Rising Cash Flows
- Cash Flow Growth: DNOW is projected to have a 20.5% earnings growth rate for 2026, with a consensus estimate revised upward by 8.7% over the past 30 days, indicating effective cash flow management that enhances its market competitiveness.
- Earnings Estimate Improvement: Pursuit Attractions' earnings per share estimates for 2025 and 2026 have increased by 1.6% and 10.3%, respectively, reflecting the company's ongoing efforts to attract customers and enhance service quality, which supports its robust growth in the tourism and hospitality sector.
- Oil and Gas Industry Outlook: Riley Exploration Permian's earnings per share estimates for 2025 and 2026 have been raised by 5.0% and 14.2%, respectively, showcasing the success of its drilling activities in Texas and New Mexico, thereby strengthening its position in the oil and gas market.
- Technological Innovation: RF Industries' fiscal 2026 earnings estimate was revised up by 22.9% in the past week, indicating strong demand in the telecom and data communications markets, further solidifying its leadership in global connectivity solutions.
DNOW Institutional Holdings Exceed 60%, Significantly Influencing Share Price
- Institutional Ownership Analysis: DNOW's institutional investors hold over 60% of the shares, indicating significant influence over the company's stock price and decision-making, reflecting professional investors' confidence in the firm.
- Major Shareholder Structure: The largest shareholder is BlackRock with a 9.5% stake, followed by Vanguard at 6.3%, highlighting the importance of large institutions in DNOW, which may also introduce greater market volatility risks.
- Insider Ownership Situation: Company insiders own shares worth approximately $29 million, indicating alignment of interests between management and shareholders, which can enhance market trust in the company.
- Public Ownership Proportion: The general public holds 39% of the shares, which, while not directly influencing decisions, still exerts a degree of sway over company operations, showcasing a broad investor base.
Daily Upgrade Report for Validea's Benjamin Graham Strategy - December 19, 2025
Validea's Value Investor Model: Today's upgrades for Validea's Value Investor model, based on Benjamin Graham's strategy, highlight DNOW Inc. as a mid-cap value stock with a rating increase from 71% to 86%, indicating strong interest due to its solid fundamentals and valuation.
Company Overview: DNOW Inc. is a leading provider of energy and industrial solutions, offering a wide range of products and services including pipe, valves, fittings, pumps, and engineered equipment, serving various markets such as oil and gas, chemical processing, and renewables.
Benjamin Graham's Influence: Benjamin Graham, known as the "Father of Value Investing," significantly impacted the investment world, mentoring notable investors like Warren Buffett and achieving impressive returns through his investment strategies during challenging economic times.
Validea's Research Service: Validea specializes in investment research by following the strategies of legendary investors, providing stock analysis and model portfolios aimed at long-term market outperformance.
Susquehanna Enhances Rating for DNOW (DNOW)
Analyst Upgrade: Susquehanna upgraded DNOW's outlook from Neutral to Positive, with a projected one-year price target of $17.34/share, indicating a potential upside of 39.61% from its current price of $12.42/share.
Institutional Ownership Trends: There are 629 funds reporting positions in DNOW, with a 1.13% increase in ownership over the last quarter, and total shares owned by institutions rose by 2.95% to 138,638K shares.
Fund Sentiment: The put/call ratio for DNOW is 0.34, suggesting a bullish sentiment among investors, while various funds have adjusted their holdings, with some increasing and others decreasing their portfolio allocations.
Revenue and Earnings Projections: DNOW's projected annual revenue is $2,503 million, reflecting a 2.92% increase, and the expected non-GAAP EPS is 1.28.
Susquehanna Upgrades DNOW Following MRC Acquisition, Signaling New Opportunities
Upgrade and Price Target: DNOW shares rose 8.3% after Susquehanna upgraded them to Positive from Neutral, setting a price target of $16, citing the company's enhanced position following the MRC Global acquisition.
Growth Opportunities: The acquisition is expected to provide increased scale, growth potential in energy and industrial markets, and a clean balance sheet for further mergers and acquisitions, alongside solid free cash flow for debt reduction and shareholder returns.
