DNOW Stock Analysis: Buy, Sell, or Hold?
DNOW - DNOW Inc.
$15.19
0.12 (0.80%)
▲
BUY
MODERATE Confidence
Last Updated: January 30, 2026
Earnings: Feb 12, 2026
11d
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: DNOW shows positive signals but monitor for confirmation. Market pricing in 2.4% annual growth which appears achievable. Moderate conviction.
💡 BUY OPPORTUNITY: DNOW shows positive signals but monitor for confirmation. Market pricing in 2.4% annual growth which appears achievable. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$27.40
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$17.01
10.7% 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 13.4x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DNOW is currently trading at $15.19, which is considered extended relative to its 30-day fair value range of $13.40 to $14.57. The stock's valuation (Forward PE: 14.3) is in line with its historical norms (13.4). At these levels, the market is pricing in 2.4% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.
Technical Outlook: Technically, DNOW is in a downtrend. The price is approaching resistance at $15.44. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: DNOW has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $17.00 (+12.8%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, DNOW is in a downtrend. The price is approaching resistance at $15.44. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: DNOW has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $17.00 (+12.8%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
EXTENDED
Fair Price Range
$13.40 -
$14.57
Company Quality Score
62/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
60.5%
All Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($17.00)
- NEUTRAL: Market pricing in 2.4% annual earnings growth - fairly valued
Fair Price Analysis
30-Day Fair Range
$13.40 -
$14.57
Current vs Fair Value
EXTENDED
Support & Resistance Levels
Support Level
$13.97
Resistance Level
$15.44
Current Trend
Downtrend
Fundamental Context
Forward P/E (Next Year Est.)
14.35
Wall Street Target
$17.00
(+12.8%)
Revenue Growth (YoY)
4.6%
Earnings Growth (YoY)
90.5%
Profit Margin
3.9%
Valuation Premium vs History
+2.4% premium
PE vs Historical
14.4 vs 13.4
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+2.4%
(market-implied from PE analysis)
1-Year Target
$15.43
(+2%)
2-Year Target
$15.80
(+5%)
3-Year Target
$16.18
(+7%)
3-Yr Target (if PE normalizes)
(PE: 14→13)
PE COMPRESSION
$15.11
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.3, Growth: 25.7%)
$46.56
(+209%)
Base:
(SPY PE: 14.4, Growth: 25.7%)
$29.97
(+99%)
Bear:
(PE: 12.2, Growth: 25.7%)
$25.47
(+69%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (17x PE), but valuation improves significantly next year (14x PE) as earnings recover.
Trailing PE: 17.10 | Current EPS (TTM): $0.87
Bull Case
$19.75
(+30%)
Analyst growth 20.7%, PE expands to 18.8
Base Case
$17.96
(+18%)
Market implied 20.7%, PE stable at 17.1
Bear Case
$10.12
(-33%)
Severe decline -20.0%, PE contracts to 14.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Last updated: January 31, 2026 1:18 AM ET
Data refreshes hourly during market hours. Next update: 2:18 AM
Data refreshes hourly during market hours. Next update: 2:18 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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Advanced DNOW Option Strategies
Professional options setups generated by AI based on today's DNOW price and gamma walls.
