DNOW Should I Buy
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DNOW Inc. is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, positive analyst ratings, and upcoming earnings announcement suggest potential for growth. Despite some hedge fund selling, the long-term prospects and cost synergies in its industry make it a solid choice.
The stock's moving averages are bullish (SMA_5 > SMA_20 > SMA_200), indicating an upward trend. However, the MACD is negative and expanding, suggesting short-term bearish momentum. RSI is neutral at 58.715, and the stock is trading near its resistance level of 17.048.
Positive analyst ratings with price targets of $18-$
Strong financial performance in Q3 2025, with revenue up 4.62% YoY and net income up 92.31% YoY.
Upcoming Q4 2025 earnings announcement on February 20, 2026, which could act as a catalyst if results exceed expectations.
Hedge funds are selling, with a significant 4965.22% increase in selling activity over the last quarter.
MACD indicates short-term bearish momentum.
In Q3 2025, DNOW reported a 4.62% YoY increase in revenue to $634 million, a 92.31% YoY increase in net income to $25 million, and a 100% YoY increase in EPS to $0.24. Gross margin improved to 22.87%, up 2.65% YoY, showcasing strong growth and profitability trends.
Analysts are positive on DNOW, with recent Buy ratings from Texas Capital and Stifel. Price targets range from $18 to $19, indicating upside potential from the current price of $16.75. Analysts highlight cost synergies and cross-selling opportunities as drivers of growth and cash flow generation.
