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DNOW Inc. (DNOW) Stock Analysis

Range Bound setup

SellModerate Confidence

Industrials · Industrial Distribution

Sell if holding. Engine safety override at $13.03: Quality below floor (2.6 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.8/10. Specifically: Below-average business quality; Negative price momentum; Below long-term trend.

DNOW Inc. is a global distributor of pipe, valves and fittings (PVF), gas products, pumps, and process/production equipment serving upstream, midstream, gas utilities, downstream, and industrial customers from ~300 locations with ~5,300 employees. The company completed its... Read more

$13.03+4.4% A.UpsideScore 5.8/10#2 of 17 Industrial Distribution
QualityF-score8 / 9FCF yield-30.41%
Stop $12.13Target $13.60(analyst − 15%)A.R:R 0.6:1
Analyst target$16.00+22.8%2 analysts
Range unavailable (2 analysts)

Sell if holding. Engine safety override at $13.03: Quality below floor (2.6 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.8/10. Specifically: Below-average business quality; Negative price momentum; Below long-term trend. Chart setup: RSI 48 mid-range, Bollinger mid-band. Score 5.8/10, moderate confidence.

Passes 6/9 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 77d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: aggressive.

Recent Developments — DNOW Inc.

Generated 2026-05-20T21:06:21Z.

Thesis

Rewards
No bull case signals
Risks
Quality below floor (2.6 < 4.0)

Key Metrics

P/E (TTM)
P/E (Fwd)14.0
Mkt Cap$2.4B
EV/EBITDA20.4
Profit Mgn-4.5%
ROE-9.4%
Rev Growth97.5%
Beta0.85
DividendNone
Rating analysts9

Quality Signals

Piotroski F8/9

Options Flow

P/C0.26bullish
IV64%elevated

Material Events(8-K, last 90d)

  • 2026-02-27Item 5.02LOW
    Board member Rodney Eads notified DNOW he will not stand for reelection at the 2026 annual meeting. Eads will step off the Board at expiration of his current term. No disagreement with Company cited.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

3 floor-breakers·1 ceiling hit

Unprofitable operations — net margin -4.5%. Quality floor flags this regardless of sector context.static

Roe
0.0
Operating Margin
0.0
Net Margin
0.0
Fcf Quality
0.0
Gross Margin
0.2
Roa
1.2
Moat
5.0
Current Ratio
8.3
Piotroski F
8.9
Cash-burning: FCF -21% of revenueNo competitive moatStrong Piotroski F-Score: 8/9Quality concerns

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Obv
1.0
Volume
2.3
Ma Position
3.0
Macd
3.1
Rsi
4.5
Volume distribution (falling OBV)Below 200-MA, MA slope -2.2%/30d — confirmed downtrend

No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static

Surprise Avg
0.0
Erm
5.0
Earnings Timing
5.0
Earnings History
5.6
GatesMomentum 2.8<4.5A.R:R 0.6 < 1.5@spotDeath cross (50MA < 200MA)Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 77d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRange BoundSuitability: Aggressive
RSI
48 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $12.02Resistance $13.82

Price Targets

$12
$14
A.Upside+4.4%
A.R:R0.6:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Quality below floor (2.6 < 4.0)
! Momentum score 2.8/10 — below 4.5 minimum
! Reward/Risk 0.6:1 at current price — below 1.5:1 minimum

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-08-05 (77d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is DNOW stock a buy right now?

Sell if holding. Engine safety override at $13.03: Quality below floor (2.6 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.8/10. Specifically: Below-average business quality; Negative price momentum; Below long-term trend. Chart setup: RSI 48 mid-range, Bollinger mid-band. Prior stop was $12.13. Score 5.8/10, moderate confidence.

What is the DNOW stock price target?

Take-profit target: $13.60 (+4.4% upside). Prior stop was $12.13. Stop-loss: $12.13.

What are the risks of investing in DNOW?

Quality below floor (2.6 < 4.0).

Is DNOW overvalued or undervalued?

DNOW Inc. trades at a P/E of N/A (forward 14.0). TrendMatrix value score: 7.5/10. Verdict: Sell.

What do analysts say about DNOW?

9 analysts cover DNOW with a consensus score of 4.2/5. Average price target: $16.

What does DNOW Inc. do?DNOW Inc. is a global distributor of pipe, valves and fittings (PVF), gas products, pumps, and process/production...

DNOW Inc. is a global distributor of pipe, valves and fittings (PVF), gas products, pumps, and process/production equipment serving upstream, midstream, gas utilities, downstream, and industrial customers from ~300 locations with ~5,300 employees. The company completed its acquisition of MRC Global in November 2025, significantly expanding its scale and distribution network.

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