Back to top

Image: Bigstock

DNOW (DNOW) Dips More Than Broader Market: What You Should Know

Read MoreHide Full Article

In the latest trading session, DNOW (DNOW - Free Report) closed at $14.62, marking a -1.88% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.58%. Meanwhile, the Dow lost 0.12%, and the Nasdaq, a tech-heavy index, lost 1.15%.

Shares of the energy and industrial distribution company have appreciated by 3.54% over the course of the past month, outperforming the Industrial Products sector's gain of 0.09% and the S&P 500's loss of 1.09%.

The upcoming earnings release of DNOW will be of great interest to investors. The company's earnings report is expected on May 10, 2024. The company's upcoming EPS is projected at $0.23, signifying an 8% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $571.6 million, reflecting a 2.12% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $1.02 per share and a revenue of $2.39 billion, demonstrating changes of +5.15% and +2.82%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for DNOW. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, DNOW is carrying a Zacks Rank of #1 (Strong Buy).

In terms of valuation, DNOW is presently being traded at a Forward P/E ratio of 14.61. Its industry sports an average Forward P/E of 19.38, so one might conclude that DNOW is trading at a discount comparatively.

The Manufacturing - General Industrial industry is part of the Industrial Products sector. At present, this industry carries a Zacks Industry Rank of 54, placing it within the top 22% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


DNOW Inc. (DNOW) - free report >>

Published in