NOW Inc (DNOW)
NYSEIndustrialsIndustrial - DistributionSnapshot 2026-09-09
$16.14-0.06%
Close 2026-09-09 · 1-day change
NYSEIndustrialsIndustrial - DistributionSnapshot 2026-09-09
Warn: Primary pillar under pressure — Revenue growth of about 35% in FY27: 13.0% vs 35% target.
NOW Inc is improving after losses. Analysts expect revenue to grow about 35% next year. The company aims for free cash flow of $150 million in 2025. Its stock trades cheaper than peers with a P/E of 18 versus 27.
NOW Inc missed earnings recently and EPS guidance is flat at $0.01 for 2026. The company remains loss-making and faces sector headwinds. Profitability and growth could disappoint, keeping the stock under pressure.
The price is about 18% below our fair value near $16. The market expects 35% revenue growth next year, which we view as justified but challenging given recent misses.
Breaks if: EPS falls below $0.50 in FY27
Breaks if: FCF falls below $100 million in FY25
Breaks if: YoY revenue growth falls below ~20% in FY27
Breaks if: P/E rises above 25 without earnings improvement
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story with a focus on achieving cost synergies and improving profitability. The current thesis state is cautious, as the company has shown mixed results and faces significant sector challenges.
The market appears to be pricing in a justified valuation, with a premium compared to peers. There is a low expectations gap, indicating that investors are not overly optimistic about immediate improvements.
Management is on track with cost synergies and revenue growth, but faces challenges with the ERP system transition. Recent financial performance has been weak, which could hinder progress in the near term.
The long-term thesis hinges on the company's ability to maintain cost synergies and improve operational efficiency. Additionally, the performance of sector bellwethers like GWW, FAST, and FERG will be crucial in determining DNOW's trajectory.
In the next 1 to 3 years, DNOW's performance will depend on effective management execution and sector dynamics. Not investment advice.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this improved outlook. There are no new threats impacting the thesis at this time.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.