DNOW (DNOW) Could Be 12% Undervalued Following Its November 5 Earnings Setup
DNOW (DNOW) is set to release third quarter 2026 results on November 5, with a conference call before the market opens, putting fresh financial detail in focus for investors watching recent share performance.
Recent trading has been constructive for DNOW, with a 20.09% 90 day share price return and a 23.50% year to date share price return contributing to an 11.86% 1 year total shareholder return. This indicates that momentum is building ahead of the earnings release.
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After a strong run into the print, the question for DNOW now shifts from past returns to what, if anything, is still left in the tank on valuation.
Most Popular Narrative: 12% Undervalued
On the most followed view of DNOW, a fair value of $18.75 sits above the last close at $16.50. This puts every earnings update under a brighter spotlight for how the long term story is progressing.
Expansion into midstream markets that DNOW has been pursuing is now supported by U.S. midstream revenue reaching a more than $1b annualized run rate in Q2 2026. This ties the Whitco acquisition and broader infrastructure focus to a larger base of gas infrastructure, LNG and power generation work that can influence revenue and earnings quality.
See why 4 investors see DNOW as 12% undervalued.
Result: Fair Value of $18.75 (UNDERVALUED)
Still, the DNOW story carries real pressure points, including ongoing ERP integration issues and securities lawsuits that could disrupt operations and unsettle the thesis.
Find out about the key risks to this DNOW narrative.
Next Steps
Mixed feelings about DNOW after all that. If you want to move before the next headline hits, start with the balance of 3 key rewards and 2 important warning signs.
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