DNOW's Plunge Represents A Big Opportunity

Daniel JonesInvesting Group LeaderFollow5ShareSavePlay(11min)CommentsSummaryDNOW shares plunged after Q4 FY2025 results missed revenue and EPS expectations, with insufficient forward-looking data post-MRC Global merger.Despite operational setbacks and lack of 2026 guidance, DNOW trades at a significant discount to peers, supporting a continued "Buy" rating.Synergy capture from the MRC Global acquisition is ahead of schedule, with 2026 cost savings guidance raised from $17 million to $23 million.Persistent ERP challenges and a flat pro forma revenue outlook temper near-term optimism, but valuation remains compelling for upside.Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » peshkov/iStock via Getty Images Feb. 20 was an awful day for DNOW Inc. (DNOW) shareholders. Shares of the company plummeted over 20.8% after management announced financial results for the final quarter of the company's 2025 fiscal year. In addition to falling shortThis article was written byDaniel Jones36.57K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.