DNOW Stock Analysis: Buy, Sell, or Hold?
DNOW - DNOW Inc.
$11.84
-0.07 (-0.59%)
▼
5d:
-2.31%
30d:
-3.97%
90d:
-11.97%
BUY
HIGH Confidence
Analysis Updated: Apr 1, 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 -5.0% annual earnings decline despite 90% recent earnings growth. Contrarian opportunity at discount to historical valuation.
✅ BUY SIGNAL: DNOW appears deeply undervalued. Market expects -5.0% 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
$26.91
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$16.71
29.1% 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 13.2x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DNOW is currently trading at $11.84, which is considered fair relative to its 30-day fair value range of $11.48 to $12.10. From a valuation perspective, the stock is trading at a discount (Forward PE: 11.3) compared to its historical average (13.2). Remarkably, the market is currently pricing in an annual earnings decline of 5.0% 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. The price is currently testing key support at $11.49. A bounce from this level would confirm strength, while a break below could signal further downside.
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 (+35.1%). 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 currently testing key support at $11.49. A bounce from this level would confirm strength, while a break below could signal further downside.
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 (+35.1%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Fair Price Range
$11.48 -
$12.10
Company Quality Score
53/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
83.3%
All Signals
- NEUTRAL: Price in fair range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 35.1% below Wall St target ($16.00)
Fair Price Analysis
30-Day Fair Range
$11.48 -
$12.10
Current vs Fair Value
FAIR
Support & Resistance Levels
Support Level
$11.49
Resistance Level
$12.35
Current Trend
Downtrend
Technical data as of
Apr 1, 2026
Fundamental Context
Forward P/E (Next Year Est.)
11.31
Wall Street Target
$16.00
(+35.1%)
Revenue Growth (YoY)
68.0%
Earnings Growth (YoY)
90.5%
Profit Margin
-3.2%
Valuation Discount vs History
-5.0% cheaper
PE vs Historical
11.3 vs 13.2
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-5.0%
(market-implied from PE analysis)
1-Year Target
$11.25
(-5%)
2-Year Target
$10.69
(-10%)
3-Year Target
$10.15
(-14%)
3-Yr Target (if PE normalizes)
(PE: 11→13)
$11.85
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.4, Growth: 48.5%)
$76.56
(+547%)
Base:
(SPY PE: 11.3, Growth: 48.5%)
$38.75
(+227%)
Bear:
(PE: 9.6, Growth: 48.5%)
$32.94
(+178%)
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 11.3 to 13.2
Stabilization Target:
$13.82
(+16.7%)
PE Expansion Potential:
+16.7%
Share & Embed Analysis
Last updated: April 02, 2026 4:21 AM ET
Data refreshes hourly during market hours. Next update: 5:21 AM
Data refreshes hourly during market hours. Next update: 5:21 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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