DNOW Inc. (DNOW) Stock Analysis
Recovery setup
Industrials · Industrial Distribution
Sell if holding. Engine safety override at $13.79: Quality below floor (2.6 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.9/10. Specifically: Below-average business quality; 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
Sell if holding. Engine safety override at $13.79: Quality below floor (2.6 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.9/10. Specifically: Below-average business quality; Below long-term trend. Chart setup: Death cross but MACD improving, RSI 62. Score 5.9/10, moderate confidence.
Passes 6/10 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 56d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
About DNOW Inc.
About DNOW Inc.
DNOW Inc. distributes pipe, valves, fittings (PVF), pumps, and fabricated process equipment to upstream, midstream, gas utilities, and downstream industrial customers through approximately 300 locations, employing about 5,300 people following the November 6, 2025 acquisition of MRC Global. U.S. rig count, a key demand proxy, declined from 589 rigs at the start of January 2025 to 546 rigs at year-end 2025 and averaged 561 rigs for the year. The company operates three geographic segments: U.S., Canada, and International.
DNOW earns revenue from product distribution across the energy value chain — upstream exploration and production, midstream transmission and gathering, gas utilities, and downstream refining and industrial end-markets — with no long-term purchase volume commitments from most customers, making revenue sensitive to customer capital expenditure decisions. Steel price movements directly affect product cost and margin: the company distributes steel-intensive PVF products and stated that steel price declines could significantly lower product margins, while price increases may not be fully passed through. The company sources from thousands of suppliers globally with no single named sole-source dependency identified in the filing. It competes with other large global distributors as well as smaller regional and local competitors. Integration of MRC Global's ERP systems presents a near-term operational risk, and the company flagged that system stabilization may require extended time, incremental costs, and management attention.
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Demand cyclicality is the sharpest structural risk: the 10-K states that a large portion of revenue depends on capital and operating expenditures in the oil and natural gas industry, and West Texas Intermediate crude fell from $73.79 per barrel at January 2, 2025 to $57.21 at January 2, 2026 — a 22% decline — shrinking the upstream budget environment that drives the majority of the business. The company acknowledged that oil and gas prices have been extremely volatile since 2014 and that any sustained decrease in industry capex could materially affect operations, with downstream effects on rig utilization rates, well completions, and MRO spending that propagate directly into product demand.
See also: Industrials · Industrial Distribution
From DNOW Inc.'s most recent 10-K filing, extracted June 9, 2026.
Recent developments
updated 2026-06-09Recent Developments — DNOW Inc.
Latest news
- NEWS Dnow Q1 Adj. EPS $0.01 Misses $0.08 Estimate, Sales $1.183B Beat $1.083B Estimate — benzinga May 7, 2026 neutral
- NEWS Alpha Buying: Following Conviction, Not the Crowd — benzinga Apr 9, 2026 neutral
Generated 2026-06-15T18:11:46Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Material Events(8-K, last 90d)
- 2026-02-27Item 5.02LOWBoard 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.
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Rating Breakdown
3 floor-breakers·1 ceiling hit
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Unprofitable operations — net margin -4.5%. Quality floor flags this regardless of sector context.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $13.79: Quality below floor (2.6 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.9/10. Specifically: Below-average business quality; Below long-term trend. Chart setup: Death cross but MACD improving, RSI 62. Prior stop was $12.97. Score 5.9/10, moderate confidence.
Take-profit target: $13.56 (-1.7% upside). Prior stop was $12.97. Stop-loss: $12.97.
Target reached (-1.4% upside); Quality below floor (2.6 < 4.0).
DNOW Inc. trades at a P/E of N/A (forward 14.5). TrendMatrix value score: 7.4/10. Verdict: Sell.
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.