DNOW Stock Analysis: Buy, Sell, or Hold?
DNOW - DNOW Inc.
$11.62
-0.63 (-5.14%)
▼
5d:
-1.11%
30d:
-1.36%
90d:
-15.49%
BUY
HIGH Confidence
Analysis Updated: Mar 30, 2026 12:00 AM ET
Earnings: May 06, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
✅ BUY SIGNAL: DNOW appears deeply undervalued. Market expects -5.7% annual earnings decline despite 90% recent earnings growth. Contrarian opportunity at discount to historical valuation.
✅ BUY SIGNAL: DNOW appears deeply undervalued. Market expects -5.7% annual earnings decline despite 90% recent earnings growth. Contrarian opportunity at discount to historical valuation.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$27.11
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$16.83
31.0% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 13.3x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DNOW is currently trading at $11.62, which is considered fair relative to its 30-day fair value range of $11.06 to $12.93. From a valuation perspective, the stock is trading at a discount (Forward PE: 11.1) compared to its historical average (13.3). Remarkably, the market is currently pricing in an annual earnings decline of 5.7% over the next few years. This pessimistic expectation contrasts with the company's recent 90.5% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, DNOW is in a downtrend. Immediate support is located at $10.94, while resistance sits at $12.35. Short-term momentum is weak, with the stock down 5.1% recently.
Market Sentiment: DNOW has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $16.00 (+37.7%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, DNOW is in a downtrend. Immediate support is located at $10.94, while resistance sits at $12.35. Short-term momentum is weak, with the stock down 5.1% recently.
Market Sentiment: DNOW has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $16.00 (+37.7%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Fair Price Range
$11.06 -
$12.93
Company Quality Score
52/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
78.6%
All Signals
- NEUTRAL: Price in fair range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BEARISH: Downward momentum (-5.1%)
- BULLISH: Trading 37.7% below Wall St target ($16.00)
Fair Price Analysis
30-Day Fair Range
$11.06 -
$12.93
Current vs Fair Value
FAIR
Support & Resistance Levels
Support Level
$10.94
Resistance Level
$12.35
Current Trend
Downtrend
Technical data as of
Mar 30, 2026
Fundamental Context
Forward P/E (Next Year Est.)
11.10
Wall Street Target
$16.00
(+37.7%)
Revenue Growth (YoY)
68.0%
Earnings Growth (YoY)
90.5%
Profit Margin
-3.2%
Valuation Discount vs History
-5.7% cheaper
PE vs Historical
11.1 vs 13.3
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-5.7%
(market-implied from PE analysis)
1-Year Target
$10.96
(-6%)
2-Year Target
$10.33
(-11%)
3-Year Target
$9.74
(-16%)
3-Yr Target (if PE normalizes)
(PE: 11→13)
$11.67
(+1%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.4, Growth: 48.5%)
$76.56
(+559%)
Base:
(SPY PE: 11.1, Growth: 48.5%)
$38.03
(+227%)
Bear:
(PE: 9.4, Growth: 48.5%)
$32.32
(+178%)
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 11.1 to 13.3
Stabilization Target:
$13.92
(+19.8%)
PE Expansion Potential:
+19.8%
Share & Embed Analysis
Last updated: March 31, 2026 3:41 AM ET
Data refreshes hourly during market hours. Next update: 4:41 AM
Data refreshes hourly during market hours. Next update: 4:41 AM
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Technical Signals Check
Is DNOW showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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