NOW (DNOW) Stock Forecast & Price Target

Dnow Inc. is exhibiting a positive financial outlook, with anticipated inventory increasing by 1.9% year-over-year in 4Q25E and a projected rise in pricing from distributors to customers of 0.9% year-over-year. Furthermore, the company's predictive regression model indicates an organic sales growth of 1.4%, with distributors expecting sales to rise by 3.6% year-over-year in 4Q25E, and a subsequent increase of 3.0% expected in 1Q26E. This gradual yet consistent growth in sales alongside manageable inventory levels and increasing pricing mechanisms suggests a robust operational health that could support Dnow's stock performance.

Dnow Inc is experiencing financial challenges primarily due to a down cycle in the oil and gas industry, which has historically impacted its return metrics, resulting in losses during previous downturns. According to recent EIA data, the decline in drilled but uncompleted wells (DUCs) by 0.6% indicates a constriction in future production capabilities, exacerbated by a DUC-to-completion ratio of 5.5, reflecting increased supply chain constraints and competitive pricing pressures in the sector. Additionally, persistent lower oil prices and the company's difficulties in effectively deploying its balance sheet and integrating acquisitions further contribute to a negative outlook for Dnow's stock.