NOW Inc. [NYSE:DNOW] has active tape with a current price of $5.18 against an analyst price target of 9.19.
For the year, the stock is trading -52.67% and the five-day change stands at 9.02%. As a point of reference, the S&P 500 is trading 1.11% YTD.
Other data to note about the company today is the Recommendation Trend that is leaning toward NOW Inc. [DNOW] as Moderate Buy.
The Bears are coming
Holding a Market Cap of $579.72 million, NOW Inc. has seen a trading range over the last year of $4.05-$12.74.
For the last five days, DNOW is up from its last closing price. The average shares trading hands each day is 1.24M, with average 10-day volume coming in at 1.75 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for DNOW. When we apply the Elder Force Index to NOW Inc., we are seeing an Elder Force Indicator number of -78211.0.
Recent Performance
The company’s enterprise value has gone from $791.95M to $415.03M quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, DNOW made a profit of 68.0 million. NOW Inc. also saw quarter revenue growth year over year of -5.63%. In addition, the company has operating cash flow of $249.0 million.
Technical Analysis
Looking at popular technical indicators, the company’s 5-day moving average is 5.19 compared to the 50-day moving average of 5.96. So, traders might want to tread carefully if they are going to bid.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. DNOW currently holds a 9-day RSI of 46.87%, while 100-day RSI stands at 44.09%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. DNOW’s 9-day MACD is 0.29 and the company’s 100-day MACD stands at -2.28.
Inside Moves
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 1.32% by insiders and 102.15% by institutions. Regarding institutional holdings, Blackrock Inc. owns 15.22%, while the second top holder, Vanguard Group, Inc. (The), currently owns 9.78%.
Conclusion
Overall, the recommended rating for DNOW is Moderate Buy. Currently, the company has 10 analysts watching the stock, and the average quarterly earnings estimate is -0.23. Quarterly revenue estimates are averaging 320.89M with the high estimate reaching 368M and the low at 272M.
To review, the current 1-year target estimate is sitting at 9.19, while the current price 5.18. Based on this, we expect the stock to rise considering the aforementioned fundamentals.
