As of Wednesday close, NOW Inc.’s (NYSE:DNOW) stock was up $0.33, moving up 3.08 percent to $11.05. The average number of shares traded per day over the past five days has been 820,780 shares. 3 times new highs have been achieved over the past 5 days, with a $0.52 gain in that time frame. In the last twenty days, the average volume was 697,040, while in the previous 50 days, it was 712,980.
Since last month, DNOW stock retreated -0.54%. Shares of the company fell to $9.87 on 08/02/23, the lowest level in the past month. A 52-week high of $14.86 was reached on 02/13/23 after having rallying from a 52-week low of $8.83. Since the beginning of this year, DNOW’s stock price has dropped by -12.99% or -$1.65, and marked a new high 14 times. However, the stock has declined by -25.64% since its 52-week high.
Valuation Metrics
Right now, NOW Inc. (DNOW) has a P/E ratio of about 8.89. The stock’s beta is 1.61. Besides these, the trailing price-to-sales (P/S) ratio of 0.51, the price-to-book (PB) ratio of 1.35, and the price-to-cash flow ratio of 10.13 may also be considered.
Financial Health
In the three months ended June 29, NOW Inc.’s quick ratio stood at 1.30, while its current ratio was 2.10, showing that the company is able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 23.50% percent. In the year ended June 29, EBITDA margin amounted to 7.96%, whereas operating margins totaled 6.50%. Based on annual data, DNOW earned $506.0 million in gross profit and brought in $2.14 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 14.20%. Return on equity (ROE) for the past 12 months was 16.30%.
According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. DNOW’s revenue rose 9.26% to $584.0 million during the quarter, while net income inched up to $594.0 million. While analysts expected NOW Inc. to report $0.25 quarterly earnings, the actual figure was $0.25 per share. During the quarter, the company generated $42.0 million in EBITDA. The liabilities of NOW Inc. were 543.0 million at the end of its most recent quarter ended June 29, and its total debt was $38.0 million. The value of shareholders’ equity is $106.72 million.
Technical Picture
This quick technical analysis looks at NOW Inc.’s (DNOW) price momentum. With a historical volatility rate of 35.06%, the RSI 9-day stood at 54.54% on 16 August.
With respect to its five-day moving average, the current NOW Inc. price is up by +4.94% percent or $0.52. At present, DNOW shares trade -0.27% below its 20-day simple moving average and +6.45% percent above its 100-day simple moving average. However, the stock is currently trading approximately +17.18% above its SMA50 and -8.22% below its SMA200.
Stochastic coefficient K was 58.05% and Stochastic coefficient D was 57.79%, while ATR was 0.41. Given the Stochastic reading of 67.82% for the 14-day period, the RSI (14) reading has been calculated as 53.79%. As of today, the MACD Oscillator reading stands at 0.04, while the 14-day reading stands at -0.03.
Analyst Ratings
The Benchmark Company launched its rating on NOW Inc. (NYSE: DNOW) to a Buy in a note to investors on July 08, 2022. NOW Inc. (DNOW) has been rated Overweight by analysts. According to 0 brokerage firms, DNOW is a sell, and 1 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate NOW Inc. stock as buy, with 2 recommending it as overweight.
With a median target price of $13.00, the current consensus forecast for the stock is $10.50 – $16.00. Based on these forecasts, analysts predict NOW Inc. (DNOW) will achieve an average price target of $13.17.
