Just the Facts on NOW Inc. (DNOW)

NOW Inc. (DNOW) is an interesting player in the Basic Materials space, with a focus on Oil & Gas Equipment & Services. The stock has been active on the tape, currently trading at $11.67, up from yesterday’s close by 0.86%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

NOW Inc. (DNOW) currently trades with a market capitalization of $1.26 Billion. That value represents a market adjusting for revenues that have been growing by 24.35 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of -$119 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of -$0.02 on a per share basis this quarter. Perhaps, that suggests something about why 1.83% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, NOW Inc. recorded a 52-week high of $18.37. It is now trading 6.7% off that level. The stock is trading $10.38 its 50-day moving average by -1.29%. The stock carved out a 52-week low down at $9.12.

In recent action, NOW Inc. (DNOW) has made a move of +11.89% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 13.41, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 16.42% with $105.98 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of DNOW.

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