Is DNOW (DNOW) The Best Non-AI Stock to Buy Now?

Baupost's Stake: $43,174,000 

DNOW Inc. (NYSE:DNOW) is simply a distributor of vigor and concern products, spun disconnected from National Oilwell Varco successful 2014. The banal is down astir 9% implicit the past year.

Its merger with MRC Global has transformed the institution into a $2.22 cardinal concern with a diversified gross premix crossed upstream vigor (41%), midstream (21%), state utilities (21%), and downstream and concern (17%). The banal has taken a beating since the woody closed, weighed down by merger-related accounting charges and a messy Oracle ERP strategy conversion astatine bequest MRC Global. Bulls judge the selloff is an overreaction that creates a compelling introduction constituent for semipermanent investors.

Key maturation catalysts are building. Gas utilities are expanding capableness to conscionable rising vigor demand, and the spike successful lipid prices pursuing the Iran struggle could yet interruption 3 years of stagnant upstream spending.

DNOW Inc. is softly becoming a information halfway play. The institution supplies piping, valves, fittings, and fluid power infrastructure for information halfway cooling systems and powerfulness management. It grew its information halfway lawsuit basal from zero successful 2024 to 11 customers by year-end 2025, and sees the conception arsenic a meaningful maturation avenue going forward.

The banal trades good beneath concern distributor peers, wherever valuation multiples tally 50–100% higher than existent levels.

Rewey Asset Management stated the pursuing regarding DNOW Inc. (NYSE:DNOW) successful its Q1 2026 capitalist letter:

"We initiated a presumption in DNOW Inc. (NYSE:DNOW), a distributor of vigor and concern products. Spun disconnected from National Oilwell Varco successful 2014, DNOW has grown gross and improved profitability implicit the past 5 years contempt a anemic upstream E&P environment. In November 2025, DNOW merged with its largest competitor, MRC Global, forming a $2.22 cardinal institution with a diversified gross mix: astir 41% upstream energy, 21% midstream, 21% state utilities, and 17% downstream and industrial.

We bought shares pursuing the crisp sell-off aft ....."(Click Here to Read the Letter successful Detail).

While we admit the imaginable of DNOW arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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