Dnow (NYSE:DNOW) Azioni

Dnow

Dnow Inc is a company engaged in world-wide supplying of energy and industrial products and packaged, engineered process and production equipment with a legacy of over one sixty years. It offers a broad set of supply chain solutions combined with a suite of digital solutions branded as DigitalNOW that provide customers world-class technology for digital commerce, data and information management. Its locations provide products and solutions to exploration and production companies, midstream transmission and storage companies, refineries, chemical companies, utilities, mining, municipal water, manufacturers, engineering and construction companies. The Company has three reportable segments being United States, Canada and International.

Dnow Inc

Stifel analyst Nathan Jones maintains Dnow (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DNOW#NYSE">DNOW</a>) with a Buy and lowers the price target from $20 to $17.

News

Price Target

Analyst Ratings

DNOW

Stifel Maintains Buy on Dnow, Lowers Price Target to $17

WIIM

DNOW hares are trading lower. The company reported Q1 financial results.

Earnings

Earnings Beats

Dnow Q1 Adj. EPS $0.22 Beats $0.17 Estimate, Sales $599.00M Beat $587.17M Estimate

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Core Scientific, Inc. - Class A Common Stock

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Earnings Scheduled For May 7, 2025

Susquehanna analyst Charles Minervino maintains Dnow (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DNOW#NYSE">DNOW</a>) with a Neutral and lowers the price target from $19 to $18.

Susquehanna Maintains Neutral on Dnow, Lowers Price Target to $18

Stifel analyst Nathan Jones maintains Dnow (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DNOW#NYSE">DNOW</a>) with a Buy and raises the price target from $17 to $20.

Stifel Maintains Buy on Dnow, Raises Price Target to $20

<h3>Gainers</h3>
<ul>
<li>Dnow (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DNOW#NYSE">DNOW</a>) shares moved upwards by 25.7% to $17.77 during Thursday's pre-market session. The market value of their outstanding shares is at $1.8 billion. As per the press release, Q4 earnings came out today. </li>
<li>Turbo Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TURB#NASDAQ">TURB</a>) shares rose 16.51% to $2.54. The market value of their outstanding shares is at $27.9 million. </li>
<li>Professional Diversity (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IPDN#NASDAQ">IPDN</a>) shares moved upwards by 13.37% to $0.43. The market value of their outstanding shares is at $6.7 million. </li>
<li>Eshallgo (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EHGO#NASDAQ">EHGO</a>) shares rose 11.8% to $1.21. The company's market cap stands at $30.7 million. </li>
<li>ConnectM Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CNTM#NASDAQ">CNTM</a>) shares rose 9.17% to $1.07. The market value of their outstanding shares is at $31.1 million. </li>
<li>FiscalNote Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOTE#NYSE">NOTE</a>) stock rose 8.58% to $2.02. The company's market cap stands at $292.2 million. </li>
</ul>
<h3>Losers</h3>
<ul>
<li>GXO Logistics (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GXO#NYSE">GXO</a>) stock decreased by 18.1% to $35.02 during Thursday's pre-market session. The market value of their outstanding shares is at $4.1 billion. As per the press release, Q4 earnings came out yesterday. </li>
<li>Li Bang International (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LBGJ#NASDAQ">LBGJ</a>) shares decreased by 16.67% to $1.75. The market value of their outstanding shares is at $32.8 million. </li>
<li>GMS (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GMS#NYSE">GMS</a>) stock fell 16.52% to $70.0. The market value of their outstanding shares is at $2.7 billion. </li>
<li>Mynaric (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MYNA#NASDAQ">MYNA</a>) shares decreased by 16.13% to $0.52. The market value of their outstanding shares is at $13.1 million. </li>
<li>Trinet Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TNET#NYSE">TNET</a>) shares fell 13.77% to $79.45. The company's market cap stands at $3.9 billion. The company's, Q4 earnings came out today. </li>
<li>Antelope Ent Hldgs (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AEHL#NASDAQ">AEHL</a>) stock declined by 13.11% to $0.13. The company's market cap stands at $4.2 million. 
See Also: <a href="http://www.benzinga.com/money/best-industrials-stocks/" title="www.benzinga.com/money/best-industrials-stocks/">www.benzinga.com/money/best-industrials-stocks/</a></li>
</ul>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

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12 Industrials Stocks Moving In Thursday's Pre-Market Session

U.S. stocks were higher, with the Nasdaq Composite gaining around 100 points on Thursday.
Shares of Robinhood Markets, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOOD#NASDAQ">HOOD</a>) rose sharply during Thursday's session after the company reported better-than-expected fourth-quarter <a href="https://www.benzinga.com/news/earnings/25/02/43676276/robinhood-q4-earnings-highlights-record-revenue-eps-beat-analyst-estimates-crypto-revenue-up-700">financial results</a>.
Robinhood reported fourth-quarter revenue of $1.01 billion, up 115% year-over-year and a new company record. The revenue figure beat a Street consensus estimate of $944.62 million, according to data from Benzinga Pro. The company reported record quarterly earnings per share of $1.01, beating a Street consensus estimate of 43 cents per share.
Robinhood shares jumped 11.9% to $62.56 on Thursday.
Here are some other big stocks recording gains in today's session.
<ul>
<li>AppLovin Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APP#NASDAQ">APP</a>) shares jumped 33.7% to $509.14 after the company reported better-than-expected fourth-quarter financial results and issued first-quarter revenue guidance above estimates.</li>
<li>Dutch Bros Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BROS#NYSE">BROS</a>) gained 30.6% to $84.55 following better-than-expected quarterly financial results. D Securities and Wedbush raised their respective price targets on the stock.</li>
<li>SBC Medical Group Holdings Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBC#NASDAQ">SBC</a>) gained 28.5% to $6.63. The company recently announced it will invest one billion yen into Bitcoin.</li>
<li>Pagaya Technologies Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGY#NASDAQ">PGY</a>) climbed 27% to $14.97 following upbeat quarterly results.</li>
<li>Aurora Innovation, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AUR#NASDAQ">AUR</a>) shares jumped 22% to $7.89 following quarterly results.</li>
<li>DNOW Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DNOW#NYSE">DNOW</a>) shares gained 21.9% to $17.20 following strong quarterly earnings.</li>
<li>The Manitowoc Company, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTW#NYSE">MTW</a>) shares jumped 20.3% to $11.76 following fourth-quarter results.</li>
<li>Sable Offshore Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOC#NYSE">SOC</a>) gained 19.5% to $29.25.</li>
<li>Corsair Gaming, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRSR#NASDAQ">CRSR</a>) gained 18.7% to $11.80 after reporting upbeat quarterly results.</li>
<li>Iridium Communications Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IRDM#NASDAQ">IRDM</a>) rose 18.7% to $32.99 after the company reported better-than-expected quarterly financial results.</li>
<li>Crocs, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CROX#NASDAQ">CROX</a>) gained 18.4% to $105.20 following strong fourth-quarter earnings and upbeat guidance.</li>
<li>Palomar Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLMR#NASDAQ">PLMR</a>) rose 16% to $126.48 following upbeat earnings.</li>
<li>MGM Resorts International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGM#NYSE">MGM</a>) gained 14.3% to $39.27 after the company reported better-than-expected quarterly financial results.</li>
<li>Lincoln Electric Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LECO#NASDAQ">LECO</a>) rose 13.3% to $219.72 following better-than-expected Q4 financial results.</li>
<li>Hims &amp; Hers Health, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HIMS#NASDAQ">HIMS</a>) gained 13.3% to $52.40.</li>
<li>Intel Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) rose 9.9% to $24.71.</li>
<li>Service Corporation International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCI#NYSE">SCI</a>) rose 9.3% to $83.12 following better-than-expected Q4 financial results.</li>
<li>Sony Group Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SONY#NYSE">SONY</a>) gained 9% to $23.95 after the company reported a year-over-year increase in third-quarter financial results.</li>
<li>HubSpot, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HUBS#NYSE">HUBS</a>) gained 7.7% to $846.00 following stronger-than-expected results.</li>
<li>GE HealthCare Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GEHC#NASDAQ">GEHC</a>) gained 7.1% to $92.03 after the company reported better-than-expected fourth-quarter adjusted EPS results and issued FY25 adjusted EPS guidance with its midpoint above estimates.</li>
<li>Tyler Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TYL#NYSE">TYL</a>) gained 6.3% to $648.75 following quarterly results.</li>
</ul>
Now Read This:
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<li> <a href="https://www.benzinga.com/25/02/43693447/top-wall-street-forecasters-revamp-coinbase-price-expectations-ahead-of-q4-earnings">Top Wall Street Forecasters Revamp Coinbase Price Expectations Ahead Of Q4 Earnings</a></li>
</ul>

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HIMS

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SONY

Robinhood, Gilead Sciences, Crocs, Lincoln Electric, HubSpot, GE HealthCare And Other Big Stocks Moving Higher On Thursday

DNOW shares are trading higher after the company reported better-than-expected Q4 financial results.

Dnow (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DNOW#NYSE">DNOW</a>) reported quarterly earnings of $0.25 per share which beat the analyst consensus estimate of $0.14 by 78.57 percent. This is a 13.64 percent increase over earnings of $0.22 per share from the same period last year. The company reported quarterly sales of $571.000 million which beat the analyst consensus estimate of $553.900 million by 3.09 percent. This is a 2.88 percent increase over sales of $555.000 million the same period last year.

Dnow Q4 2024 Adj. EPS $0.25 Beats $0.14 Estimate, Sales $571.000M Beat $553.900M Estimate

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Earnings Scheduled For February 13, 2025

February 5, 2025
There were so many notable stock buyback announcements since the start of 2025. 
Beyond the two stocks we discuss below, there were several major buyback announcements during the last month, including Netflix's (NFLX) $15 billion additional buyback, which accounts for 4% of its market cap, GE Aerospace's (GE) $7 billion buyback representing 3% of its market cap at the time of announcement, and HCA Healthcare's (HCA) significant $10 billion buyback, making up 12% of its market cap. In just the first month of this year, 20 companies announced buybacks worth $1 billion and more.
Twilio Inc. (TWLO): $145.92
Market Cap:&nbsp;$22.38B
EV:&nbsp;$20.91B
<figure class="wp-block-image aligncenter"><img decoding="async" src="https://www.insidearbitrage.com/wp-content/uploads/2025/01/TWLO-IA-Score.png" alt="TWLO IA Score" class="wp-image-157132" /></figure>
I first came across Twilio from a Fortune magazine article before the company went public and then invested in the company when I noticed founder Jeff Lawson purchase shares in the open market when the IPO related pop in the stock price faded. The stock went on a huge roller coaster ride from there, up 1,600% at one point before coming back to earth.
I mentioned the company in the introduction of my book <a href="https://a.co/d/b6v4OHB" target="_blank" rel="noreferrer noopener">The Event-Driven Edge in Investing</a> and we also covered the company in our C-Suite article last year, following Jeff Lawson's sudden resignation.
Twilio currently scores 73 on our IA Score quant model without including momentum and valuation factors. We typically consider companies scoring above 70 for further research but there are always exceptions.&nbsp;Twilio's stock soared on January 24th, fueled by optimistic targets unveiled at its annual Investor Day, and has been climbing steadily since.
As a leading cloud communications platform-as-a-service (CPaaS) provider, Twilio enables businesses to seamlessly integrate voice, SMS, video, and email communication into their applications via APIs. Its solutions are at the core of customer engagement for major companies like Airbnb, and Shopify, making it a critical player in the digital communications space.
<figure class="wp-block-image aligncenter"><img decoding="async" src="https://www.insidearbitrage.com/wp-content/uploads/2025/01/TWLO-powered-brands.png" alt="TWLO powered brands" class="wp-image-157133" /></figure>
Key Insights
<ul>
<li>Twilio's turnaround under its new CEO has been remarkable, with shares up over 100% in the past year.</li>
<li>The company projects GAAP operating profitability in 2025 and aims to generate over $3 billion in cumulative free cash flow during the next three years.</li>
<li>Twilio maintains a strong net cash position and has been aggressively buying back shares, retiring 15% of its stock over the last six quarters.</li>
<li>A leaner cost structure, with a 40% headcount reduction since Q3'22 and an 8% drop in stock-based compensation over two years, has cut losses, strengthened profitability, and generated strong free cash flow.</li>
<li>Twilio is gaining traction among AI startups, with emerging AI companies increasingly selecting its platform for customer engagement solutions.</li>
<li>International expansion—currently representing less than 10% of its total addressable market—opens up a largely under-penetrated opportunity that could serve as a powerful growth catalyst over time.</li>
</ul>
<figure class="wp-block-image aligncenter"><img decoding="async" src="https://www.insidearbitrage.com/wp-content/uploads/2025/01/TWLO-products.png" alt="TWLO products" class="wp-image-157140" /></figure>
Twilio's strength lies in programmable communications, enabling developers to embed messaging and voice features without telecom infrastructure. As AI and digital transformation reshape customer interactions, Twilio remains central to modern business communications.
Currently, 65% of revenue comes from the U.S., while 35% is international. However, the global market represents less than 10% of its total addressable market (TAM), presenting significant growth potential if Twilio expands internationally.
Leadership Driving Twilio's Turnaround
The appointment of Khozema Shipchandler as CEO in January 2024 marked the beginning of Twilio's turnaround story. An internal promotion, Shipchandler quickly shifted gears, steering the company toward a stronger, more efficient future. With over 25 years of experience, he previously served as President of Twilio Communications, where he led innovation and operational improvements.
Prior to that, he held key roles as Twilio's COO and CFO. Before joining Twilio, Shipchandler spent 22 years at GE, holding leadership positions in Industrial Internet, Corporate Audit, and Aviation, across the U.S., Middle East, and Singapore. He holds a Bachelor of Arts from Indiana University, Bloomington, and currently serves on the boards of Smartsheet and Ethos. Twilio's CFO Aidan Viggiano also spent 18 years at GE, joined Twilio in 2019 and was promoted to the role of CFO in 2023.  
Financials
Twilio's revenue has surged from $1.13 billion to $4.15 billion over the past five years, achieving a 34% CAGR. Net losses have significantly narrowed, putting the company on the brink of GAAP profitability. While net cash has declined recently, it still accounts for more than 10% of Twilio's market cap. Importantly, Twilio has generated positive free cash flow for six straight quarters.
<figure class="wp-block-image aligncenter"><img decoding="async" src="https://www.insidearbitrage.com/wp-content/uploads/2025/01/TWLO-financial-statements.png" alt="TWLO financial statements" class="wp-image-157135" /></figure>
Source: InsideArbitrage
Valuation
With a forward P/E of 34.78 and forward EV/EBITDA of 24.62, the valuation appears expensive. Investors are probably willing to pay up because of the company's strong balance sheet, acceleration in top-line growth, and ongoing share repurchases.
Peers
Twilio's stock has significantly outperformed the S&amp;P500 and other major players like Zoom Video Communications, Inc. (ZM) and RingCentral, Inc. (RNG) over the last year. There is some mean-reversion risk if tech stocks like Twilio fall out of favor.
<figure class="wp-block-image aligncenter"><img decoding="async" src="https://www.insidearbitrage.com/wp-content/uploads/2025/01/TWLO-peer-price-comparison.png" alt="TWLO peer price comparison" class="wp-image-157136" /></figure>
Source: Seeking Alpha
Share Repurchase
Twilio does not pay a dividend, opting instead for share repurchases to deliver shareholder value. The company plans to return an annual average of 50% of its free cash flow from 2025 to 2027. Over the past six quarters, Twilio has reduced its share count by 15%, completing $3 billion in share repurchases since Q1 2023. The company recently announced a new $2 billion buyback program through the end of 2027, representing around 11.5% of its market cap at the time of announcement.
With annual stock-based compensation (SBC) running at $600 million, some of this buyback will be used to offset dilution from SBC and the rest will help bring down shares outstanding as we have seen in the recent past.
<figure class="wp-block-image aligncenter"><img decoding="async" src="https://www.insidearbitrage.com/wp-content/uploads/2025/01/TWLO-change-in-shares-outstanding.png" alt="TWLO change in shares outstanding" class="wp-image-157137" /></figure>
Source: InsideArbitrage
Q3 Results
Twilio exceeded expectations in Q3 2024, posting 10% year-over-year revenue growth, well above the projected 6%. Notably, the company has consistently outperformed revenue and EPS estimates for eight consecutive quarters.
<figure class="wp-block-image aligncenter"><img decoding="async" src="https://www.insidearbitrage.com/wp-content/uploads/2025/01/TWLO-Q3-results.png" alt="TWLO Q3 results" class="wp-image-157138" /></figure>
Source: Twilio (Q3 Earnings Presentation)
Twilio will report Q4 results on February 13. The company has set bullish financial targets through 2027.
<figure class="wp-block-image aligncenter"><img decoding="async" src="https://www.insidearbitrage.com/wp-content/uploads/2025/01/TWLO-forward-financial-targets-.png" alt="TWLO forward financial targets" class="wp-image-157139" /></figure>
Source: Twilio (2025 Investor Day Presentation)
Bottom Line
Twilio's strong balance sheet, with nearly 10% of its market cap in cash, combined with an aggressive share repurchase strategy, underscores both its financial strength and ability to be shareholder friendly. The company's accelerating revenue growth, the CEO's solid execution over the past year, and its path to breakeven create a compelling case for further upside. Their recent analyst day painted a picture of revenue growth that prompted 23 analysts to revise their earnings expectations upward. This is a highly volatile stock that brings with it significant risk of mean-reversion. With the ouster of the founder/CEO after his shares lost their super-voting rights in 2023, in some ways Twilio might be setting itself up to become a potential acquisition candidate.  
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DNOW Inc. (DNOW): $15.10
Market Cap:&nbsp;$1.6B
EV:&nbsp;$1.38B
With over 160 years of industry experience, DNOW Inc. (DNOW) has established itself as a premier global distributor serving the oil &amp; gas, industrial, and energy sectors, forming a critical link from drilling to distribution. Operating under the DistributionNOW brand, the company maintains a vast network of 165+ locations worldwide. Expanding through both organic growth and acquisitions, the company has a global footprint, with distribution centres, warehouses, and customer service locations across North America, Latin America, Europe, the Middle East, and the Asia-Pacific region. The US is the major contributor of revenue with 79%, followed by Canada with 11%.
<figure class="wp-block-image aligncenter"><img decoding="async" src="https://www.insidearbitrage.com/wp-content/uploads/2025/02/DNOW-global-operations.png" alt="DNOW Global operations" class="wp-image-157126" /></figure>
Key Insights
<ul>
<li>DNOW serves as a supplier of maintenance, repair, and operations (MRO) products, safety equipment, and engineered solutions with a catalogue of 300,000+ SKUs (Stock Keeping Units).</li>
<li>The company is focused on expanding beyond traditional oil &amp; gas markets to capture opportunities in industrial, renewable, and energy transition sectors, thus mitigating the impact of fluctuations in the cyclical energy industry.</li>
<li>Debt-free balance sheet and a net cash position of $217 million positions the company to invest in strategic growth opportunities.</li>
<li>Active buybacks including the recently approved $160 million share repurchase indicate shareholder friendly capital allocation.</li>
</ul>
DNOW is a one-stop provider of critical products and supply chain solutions that support the upstream, midstream, and downstream energy sectors, as well as various industrial markets. The company's offerings include MRO supplies, pipes, valves, fittings, electrical components, and pumping solutions. It also provides modular process, production, measurement, and control systems. Beyond physical products, DNOW offers digital procurement tools and inventory management services to optimize supply chain operations for industrial clients.
<figure class="wp-block-image aligncenter"><img decoding="async" src="https://www.insidearbitrage.com/wp-content/uploads/2025/02/DNOW-product-portfolio.png" alt="DNOW product portfolio" class="wp-image-157127" /></figure>
Source: DNOW (Investor Presentation)
Strategic Initiatives
<ul>
<li>Expanding Market Reach – DNOW continues to broaden its presence in industrial and energy markets beyond traditional oil &amp; gas.</li>
<li>Digital Transformation – Investing in digital solutions like eCommerce and automation to enhance customer engagement.</li>
<li>M&amp;A Strategy – Over the past 9 years, it has integrated 11 businesses to produce an outstanding pump distribution, rental and service business, combined with engineering, design and fabrication of process production and measurement equipment, which naturally complements its U.S. energy centric business.</li>
</ul>
<figure class="wp-block-image aligncenter"><img decoding="async" src="https://www.insidearbitrage.com/wp-content/uploads/2025/01/DNOW-acquisitions.png" alt="DNOW acquisitions" class="wp-image-157249" /></figure>
Source: DNOW (Investor Presentation)
Market Drivers &amp; Demand Trends
DNOW's demand is driven by oil and gas drilling, production, refining, and industrial activities, influenced by global energy supply, economic conditions, and geopolitics. Higher oil prices boost drilling and infrastructure investments, increasing demand for DNOW's equipment and MRO supplies.
In the U.S. market, active rigs, well completions, and new wells drilled—key drivers of revenue for DNOW—have each dropped by over 12% year-over-year. Yet, the company has effectively cushioned itself from this impact through its diversified revenue streams, demonstrating strong adaptability in an otherwise challenging oil and gas environment.
Recently, Trump called for Saudi Arabia and OPEC to cut oil prices. While OPEC+ has not yet responded, early indications suggest they are unlikely to alter their planned production increase in April. This bodes well for DNOW, as higher production levels typically lead to greater industrial activity, driving increased demand for its products and services.
<figure class="wp-block-image aligncenter"><a href="https://x.com/jurgen_nauditt/status/1884243295263502707" target="_blank" rel="noreferrer noopener"><img decoding="async" src="https://www.insidearbitrage.com/wp-content/uploads/2025/02/DNOW-tweet1-on-OPEC.png" alt="DNOW tweet1 on OPEC" class="wp-image-157129" /></a></figure>
DNOW remains optimistic about midstream growth. Management sees this sector as a key focus due to its low servicing costs and high-volume transaction potential. While margins are slightly lower, strong supplier relationships and product access make midstream a natural extension of DNOW's upstream business. Notably, the midstream segment now accounts for approximately 20% of DNOW's total revenue and the company aims to drive further growth and profitability in 2025 from this sector.
As the world shifts toward renewable energy, DNOW is adapting by expanding into CCUS (Carbon Capture, Utilization, and Storage.), and sustainable technologies. The number of CCUS projects grew 60% in 2024, with 44 new facilities under construction, a 70% year-over-year increase.
Financial Strength &amp; Shareholder Value
With a debt-free balance sheet and a net cash position of $217 million, DNOW is well-equipped to pursue strategic growth opportunities while delivering value to shareholders. In the third quarter, DNOW generated an additional $72 million in free cash flow, bringing the trailing 12-month total to $273 million. This performance was driven by record growth in U.S. Process Solutions, contributions from recent acquisitions, and efficient inventory management—all achieved despite a challenging oil and gas environment, lower commodity prices, and ongoing industry consolidation.
<figure class="wp-block-image aligncenter"><img decoding="async" src="https://www.insidearbitrage.com/wp-content/uploads/2025/01/DNOW-financial-statements.png" alt="DNOW financial statements" class="wp-image-157246" /></figure>
Source: InsideArbitrage
DNOW does not pay dividends but focuses on share repurchases to increase shareholder value. It recently doubled its share repurchase program to $160 million, following the successful completion of its $80 million inaugural buyback, originally authorized through 2024. The new program represents around 11% of its market cap at announcement. Over the past two years, the company has steadily reduced its shares outstanding by nearly 4%, demonstrating its disciplined approach to capital allocation
Competitive Landscape
DNOW operates in the highly competitive industrial distribution sector, competing with companies like MRC Global Inc. (MRC) and DXP Enterprises, Inc. (DXPE). While DNOW has outpaced the S&amp;P 500 over the past year, its performance has been moderate compared to its peers. However, it stands out with the best margins and the strongest balance sheet, managing to achieve a net income margin of 8.7% despite a low gross margin of 22.87%. With a forward P/E of 20.68 and forward EV/EBITDA of 8.91, DNOW appears undervalued compared to its peers. This discount may stem from market concerns over its relatively low year-over-year revenue growth, despite its financial strength.
Risks
<ul>
<li>Earnings are tied to crude oil and gas prices, which are influenced by OPEC decisions, geopolitical instability, and global demand fluctuations.</li>
<li>Industrial slowdowns or supply chain disruptions could impact growth.</li>
<li>Higher interest rates and inflation can increase DNOW's operating costs and reduce customer spending on infrastructure projects.</li>
</ul>
Conclusion
DNOW remains a key player in energy and industrial distribution, supported by a debt-free balance sheet, ongoing share buybacks, and a growing digital presence. The company is actively expanding beyond oil and gas, targeting midstream, renewables, and high-growth industrial sectors like water and mining. Additionally, OPEC's plans to increase oil production present a favorable tailwind, further supporting demand for DNOW's products and services. While commodity price swings and market cycles present challenges, it will be interesting to see how DNOW's commitment to diversification, operational efficiency, and new revenue opportunities plays out in the years ahead.
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Disclaimer:&nbsp;I hold long positions in Netflix (NFLX), General Electric (GE) and Twilio (TWLO). Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.

Equities

Buybacks

TWLO

Significant Stock Repurchases at Twilio and DNOW

BA: -4% &#x7C; <a href="https://www.benzinga.com//node/43178141">Boeing shares are trading lower after the company reported preliminary Q4 financial results.</a>
&nbsp;
ALUR: 298% &#x7C; <a href="https://www.benzinga.com//node/43176830">Allurion Technologies shares are trading higher after the company announced its intention to initiate a clinical study combining its Allurion program with GLP-1 agonists to improve muscle mass and overall body composition.</a>
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DNOW: 8% &#x7C; <a href="https://www.benzinga.com//node/43187096">DNOW shares are trading higher after the company's Board of Directors approved a $160 million share repurchase program.</a>

ALUR

Market-Moving News for January 24th

DNOW shares are trading higher after the company's Board of Directors approved a $160 million share repurchase program.

DNOW's Board Of Directors Approve $160M Shares Repurchase Program

<h3>Gainers</h3>
<ul>
<li>New Horizon Aircraft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOVR#NASDAQ">HOVR</a>) stock increased by 22.3% to $0.75 during Monday's pre-market session. The market value of their outstanding shares is at $18.4 million. </li>
<li>Palladyne AI (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDYN#NASDAQ">PDYN</a>) stock increased by 18.98% to $4.2. The company's market cap stands at $126.4 million. </li>
<li>Sidus Space (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SIDU#NASDAQ">SIDU</a>) stock increased by 15.15% to $4.56. The market value of their outstanding shares is at $39.6 million. </li>
<li>Turbo Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TURB#NASDAQ">TURB</a>) shares increased by 15.06% to $1.93. The company's market cap stands at $21.2 million. </li>
<li>FiscalNote Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOTE#NYSE">NOTE</a>) shares rose 11.7% to $1.24. The company's market cap stands at $179.4 million. </li>
<li>Samfine Creation Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SFHG#NASDAQ">SFHG</a>) stock rose 11.59% to $0.77. The company's market cap stands at $17.1 million. </li>
</ul>
<h3>Losers</h3>
<ul>
<li>Wilhelmina International (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WHLM#NASDAQ">WHLM</a>) stock fell 17.2% to $3.42 during Monday's pre-market session. The market value of their outstanding shares is at $17.6 million. </li>
<li>Nuburu (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/BURU#AMEX">BURU</a>) shares declined by 8.63% to $0.44. The company's market cap stands at $8.5 million. </li>
<li>Timken (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TKR#NYSE">TKR</a>) shares decreased by 8.62% to $65.46. The market value of their outstanding shares is at $4.5 billion. </li>
<li>Azul (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AZUL#NYSE">AZUL</a>) shares declined by 8.39% to $1.64. The company's market cap stands at $190.1 million. </li>
<li>Dnow (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DNOW#NYSE">DNOW</a>) shares fell 7.61% to $11.91. The company's market cap stands at $1.2 billion. </li>
<li>Shimmick (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHIM#NASDAQ">SHIM</a>) stock fell 6.92% to $2.29. The market value of their outstanding shares is at $77.3 million. 
See Also: <a href="http://www.benzinga.com/money/best-industrials-stocks/" title="www.benzinga.com/money/best-industrials-stocks/">www.benzinga.com/money/best-industrials-stocks/</a></li>
</ul>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

AZUL

BURU

HOVR

PDYN

SFHG

SHIM

SIDU

WHLM

12 Industrials Stocks Moving In Monday's Pre-Market Session

U.S. stock futures were mixed this morning, with the Dow futures falling around 0.2% on Monday.
Shares of Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) fell sharply in today's pre-market trading after a US jury reportedly found Qualcomm (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) did not breach Nuvia&#8217;s license agreement <a href="https://www.benzinga.com/quote/ARM">with the company</a>.
Arm Holdings shares fell 2.3% to $129.14 in the pre-market trading session.
Here are some other stocks moving lower in pre-market trading.
<ul>
<li>Core Laboratories Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLB#NYSE">CLB</a>) shares dipped 11% to $15.00 in pre-market trading.</li>
<li>Astria Therapeutics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ATXS#NASDAQ">ATXS</a>) shares declined 10.8% to $8.53 in pre-market trading.</li>
<li>SIGA Technologies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SIGA#NASDAQ">SIGA</a>) declined 8.5% to $5.41 in pre-market trading.</li>
<li>Dnow Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DNOW#NYSE">DNOW</a>) fell 7.7% to $11.90 in pre-market trading.</li>
<li>DiamondRock Hospitality Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>) fell 4.3% to $8.92 in pre-market trading.</li>
<li>NI Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NODK#NASDAQ">NODK</a>) fell 3.8% to $14.73 in pre-market trading.</li>
</ul>
Now Read This: 
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/12/42616196/jim-cramer-likes-walmart-recommends-buying-this-very-very-good-financial-stock">Jim Cramer Likes Walmart, Recommends Buying This &#8216;Very, Very Good&#8217; Financial Stock</a></li>
</ul>

Pre-Market Outlook

ATXS

NODK

QCOM

SIGA

Arm Holdings And Other Big Stocks Moving Lower In Monday's Pre-Market Session

Dnow (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DNOW#NYSE">DNOW</a>) reported quarterly earnings of $0.21 per share which met the analyst consensus estimate. This is a 16 percent decrease over earnings of $0.25 per share from the same period last year. The company reported quarterly sales of $606.000 million which missed the analyst consensus estimate of $614.925 million by 1.45 percent. This is a 3.06 percent increase over sales of $588.000 million the same period last year.

Earnings Misses

Dnow Q3 2024 Adj. EPS $0.21, Inline, Sales $606.000M Miss $614.925M Estimate

CTOS

DSGR

HEES

TITN

TRNS

XMTR

Shares of industrial distribution companies are trading higher. Investors may be weighing the potential impact of Donald Trump's policies on the sector.

Dnow (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DNOW#NYSE">DNOW</a>) reported quarterly earnings of $0.25 per share which beat the analyst consensus estimate of $0.24 by 4.17 percent. The company reported quarterly sales of $633.000 million which beat the analyst consensus estimate of $632.500 million by 0.08 percent. This is a 6.57 percent increase over sales of $594.000 million the same period last year.

Dnow Q2 2024 Adj. EPS $0.25 Beats $0.24 Estimate, Sales $633.000M Beat $632.500M Estimate

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