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DNOW (DNOW) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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DNOW (DNOW - Free Report) closed at $14.68 in the latest trading session, marking a -0.61% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.46%. Meanwhile, the Dow experienced a drop of 0.98%, and the technology-dominated Nasdaq saw a decrease of 0.64%.

The energy and industrial distribution company's stock has dropped by 3.15% in the past month, falling short of the Industrial Products sector's loss of 2.71% and the S&P 500's loss of 3.04%.

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 earnings per share (EPS) are projected to be $0.23, reflecting an 8% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $571.6 million, down 2.12% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.02 per share and a revenue of $2.38 billion, signifying shifts of +5.15% and +2.68%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for DNOW. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. DNOW is currently sporting a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, DNOW is currently exchanging hands at a Forward P/E ratio of 14.48. For comparison, its industry has an average Forward P/E of 19.25, which means DNOW is trading at a discount to the group.

The Manufacturing - General Industrial industry is part of the Industrial Products sector. With its current Zacks Industry Rank of 66, this industry ranks in the top 27% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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