What Makes DNOW (DNOW) a Lucrative Investment?

1 month ago 23

Soumya Eswaran

Wed, April 22, 2026 astatine 9:26 AM CDT 3 min read

Rewey Asset Management, an concern absorption firm, released its “RAM Smid Composite” capitalist missive for the archetypal 4th of 2026. A transcript of the missive tin beryllium downloaded here. The Composite reports a instrumentality of 9.21% successful Q1 2026, outperforming the Russell 2500 Value Total Return index, which gained 4.77%. The scale roseate 11.08% until precocious February but declined aboriginal owed to the Iran struggle and rising lipid prices. The Index’s show signals a displacement successful capitalist absorption from larger-cap tech stocks to undervalued and neglected tiny and mid-cap companies. Despite the marketplace environment, Rewey remains unchanged successful its concern philosophy, emphasizing financially robust companies that tin withstand marketplace volatility and exploit strategical opportunities. In addition, delight cheque the Composite’s apical 5 holdings to cognize its champion picks successful 2026.

In its first-quarter 2026 capitalist letter, Rewey Asset Management highlighted DNOW Inc. (NYSE:DNOW) arsenic a recently added position. DNOW Inc. (NYSE:DNOW) is simply a starring distributor of vigor and concern products focusing connected pipe, valves, fittings, and pumps. On April 21, 2026, DNOW Inc. (NYSE:DNOW) closed astatine $11.94 per share. One-month instrumentality of DNOW Inc. (NYSE:DNOW) was 0.87%, and its shares mislaid 21.03% implicit the past 52 weeks. DNOW Inc. (NYSE:DNOW) has a marketplace capitalization of $2.28 billion.

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

"We initiated a presumption successful 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 DNOW Inc. reported 4Q25 earnings. In our view, the merchandise led to capitalist neglect owed to galore merger-related accounting charges and quality that bequest MRC Global was experiencing important issues with its Oracle ERP conversion. We judge this disruption has obscured the merger’s important gross and outgo synergies, arsenic good arsenic a imaginable cyclical betterment successful upstream and chemic spending..." (Click present to work the afloat text)

Why DNOW Inc (DNOW) Is Up the Most So Far successful 2025

DNOW Inc. (NYSE:DNOW) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 28 hedge money portfolios held DNOW Inc. (NYSE:DNOW) astatine the extremity of the 4th quarter, compared to 30 successful the erstwhile quarter. While we admit the imaginable of DNOW Inc. (NYSE: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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