This energy sector distributor delivers maintenance, repair, and supply chain solutions to industrial clients across a global network.On February 5, Tejara Capital Ltd disclosed a new position in DNOW (DNOW +1.43%), acquiring 685,617 shares worth an estimated $9.08 million based on quarterly average pricing.What happenedAccording to a recent SEC filing dated February 5, Tejara Capital Ltd established a new position in DNOW, purchasing 685,617 shares during the fourth quarter. The quarter-end value of the po ...

Key Takeaways Enova International is highlighted among four stocks showing improving cash flow trends this earnings season.CMPR benefits from rising cash flows as demand grows for customized print and digital products.DNOW and PRSU also screen well, supported by increasing cash flows and improving earnings estimates.The Q4 earnings season is in full swing, and investors are now interested in betting on stocks based on profit numbers and surprises. Looking beyond profits and figuring out a company’s ability ...

Key Takeaways DNOW, PRSU, REPX and RFIL show latest-quarter cash flow at or above their 5-year averages.DNOW posts rising earnings estimates and a VGM Score of A, highlighting strong cash flow efficiency.PRSU, REPX and RFIL show estimate upgrades and solid VGM Scores, backing improving cash trends.Crunching profit numbers and evaluating surprises might appear as a good option in the ongoing reporting cycle, but these do not ensure that the profits are being efficiently channeled to the reserves for funding ...

Core Insights - The price-to-earnings (P/E) ratio is a popular metric among investors for identifying undervalued stocks, but it has limitations, including its inability to value loss-making firms and susceptibility to accounting manipulation [1][5] - The EV-to-EBITDA ratio is considered a more comprehensive alternative, providing a clearer picture of a company's valuation by accounting for debt and offering insights into profitability [2][3][4] Valuation Metrics - EV-to-EBITDA is calculated by dividing a company's enterprise value (EV) by its earnings before interest, taxes, depreciation, and amortization (EBITDA), making it a useful tool for assessing companies with varying levels of debt [3][4] - A lower EV-to-EBITDA ratio indicates a potentially undervalued stock, making it attractive for acquisition targets [4][5] - The P/E ratio does not account for debt, which can lead to misleading valuations, especially for companies with significant leverage [4][5] Screening Criteria for Value Stocks - Parameters for screening value stocks include an EV-to-EBITDA ratio lower than the industry median, a P/E ratio below the industry median, and a price-to-book (P/B) ratio less than the industry average [8][10] - Additional criteria include a price-to-sales (P/S) ratio lower than the industry median, estimated one-year EPS growth greater than or equal to the industry median, and a minimum average trading volume of 50,000 shares [10][11] Selected Stocks - Plains GP Holdings, L.P. (PAGP) has a Zacks Rank of 1 and a Value Score of A, with an expected year-over-year earnings growth rate of 27% for 2026 [12][13] - DNOW Inc. (DNOW) also holds a Zacks Rank of 1 and a Value Score of A, with an expected earnings growth rate of 18.5% for 2026 [13][14] - Gibraltar Industries, Inc. (ROCK) has a Zacks Rank of 2 and a Value Score of A, with an expected earnings growth rate of 11% for 2026 [14] - Miller Industries, Inc. (MLR) is another Zacks Rank 2 stock with a Value Score of A, showing a remarkable expected earnings growth rate of 139.5% for 2026 [15] - Sally Beauty Holdings, Inc. (SBH) has a Zacks Rank of 2 and a Value Score of A, with an expected earnings growth rate of 8.4% for fiscal 2026 [15][16]

Core Viewpoint - The company DNOW, Inc. is expected to experience a positive shift in momentum due to the infusion from MRC, which is significant in a stagnant market. This is evidenced by a 10% increase in stock price recently [1]. Company Analysis - DNOW, Inc. has shown a notable stock price increase of 10% recently, indicating positive investor sentiment [1]. - The infusion from MRC is anticipated to be a catalyst for change in the company's performance, suggesting potential growth opportunities [1]. Industry Context - The analysis is situated within the energy sector, specifically focusing on oilfield equipment services, which has been a primary area of coverage for over 7 years [1].

Core Insights - The article emphasizes the importance of strong foundational companies in the technology, industrial, and conglomerate sectors for long-term success [1] Group 1: Company Focus - Companies with robust financials and strategic approaches are highlighted as having the potential for sustained performance [1] - The analysis combines financial metrics with narrative storytelling to provide a comprehensive understanding of market dynamics [1] Group 2: Industry Perspective - The focus on technology, industrial, and conglomerate sectors indicates a targeted interest in industries that are likely to drive future growth [1]

Core Insights - The article emphasizes the importance of strong foundational companies in the technology, industrial, and conglomerate sectors for long-term success [1] Group 1: Company Focus - Companies with robust financials and strategic narratives are highlighted as favorable investment opportunities [1] - The analysis combines financial metrics with storytelling to provide insights into market performance [1] Group 2: Industry Perspective - The technology, industrial, and conglomerate sectors are identified as key areas of interest for investment analysis [1]

Group 1 - Dnow Inc. shares are currently trading at $14.27, reflecting a 0.71% increase, with a 13.52% rise over the past month, but a 1.04% decrease over the past year [1] - The P/E ratio is a critical metric for investors, comparing the current share price to the company's EPS, indicating market expectations for future performance [5] - Dnow has a lower P/E ratio compared to the industry average of 22.78 for Trading Companies & Distributors, suggesting potential undervaluation despite possible concerns about performance [6] Group 2 - A low P/E ratio can indicate undervaluation but may also reflect weak growth prospects or financial instability, necessitating a cautious approach [8] - The P/E ratio should be considered alongside other financial metrics, industry trends, and qualitative factors for a comprehensive analysis of a company's financial health [9]

Core Insights - ServiceNow (NOW) is enhancing its collaboration with Microsoft (MSFT) through new integrations aimed at improving orchestration, governance, and collaboration across AI agents and workflows [1][2] - The partnership will connect ServiceNow's AI Platform with Microsoft 365, Copilot, Foundry, and GitHub, facilitating better management of autonomous AI agents [1][2] - ServiceNow has raised its subscription revenue guidance for 2025 to between $12.835 billion and $12.845 billion, indicating a 20% growth on a non-GAAP constant currency basis [3] Integration and Collaboration - The integration of NOW's AI Control Tower with Microsoft Foundry and Copilot Studio will enable automatic governance across AI agents on Microsoft platforms [2] - ServiceNow Build Agent's integration with GitHub allows secure access to GitHub issues, pull requests, and discussions [2] - Upcoming integration of Now Assist with Microsoft Agent 365 will bring enterprise workflows into Microsoft Word, Outlook, and Teams [2] Competitive Landscape - ServiceNow faces significant competition from Atlassian (TEAM) and Salesforce (CRM), both of which are enhancing their subscription-based solutions and AI capabilities [4][5] - Atlassian has seen a CAGR of approximately 40% in its subscription segment from fiscal 2020 to fiscal 2025, driven by demand for automated communication systems [4] - Salesforce reported a 140% year-over-year increase in Data Cloud customer adoption, indicating strong demand for AI tools that enhance enterprise workflows [5] Financial Performance and Valuation - ServiceNow's stock has declined by 24.6% year to date, underperforming the broader Zacks Computer and Technology sector, which has returned 25.9% [6] - The forward 12-month price/sales ratio for NOW is 10.83X, significantly higher than the sector average of 6.61X, suggesting that the stock may be overvalued [9] - The Zacks Consensus Estimate for fourth-quarter 2025 earnings is $4.35 per share, reflecting an 18.53% year-over-year growth [11]

Core Insights - The performance of DNOW's international operations is critical for understanding its financial resilience and growth potential [1][2][3] Revenue Performance - DNOW's total revenue for the quarter was $634 million, reflecting a 4.6% increase from the previous year [4] - Canada generated $53 million in revenue, accounting for 8.4% of total revenue, which was a decrease of 4.93% from the expected $55.75 million [5] - International revenue contributed $54 million, representing 8.5% of total revenue, also falling short of the expected $56.25 million by 4% [6] Future Projections - Analysts project DNOW's revenue for the ongoing fiscal quarter to be $603.35 million, a 5.7% increase year-over-year, with Canada and International expected to contribute $55.9 million (9.3%) and $57.5 million (9.5%) respectively [7] - For the full year, total revenue is projected at $2.47 billion, a 4% increase from last year, with Canada and International expected to contribute $220.2 million (8.9%) and $228.45 million (9.3%) respectively [8] Market Dynamics - The reliance on global markets presents both opportunities and challenges for DNOW, making the analysis of international revenue trends essential for forecasting future performance [9][10] - The intricacies of global interdependence and geopolitical factors are closely monitored by analysts to adjust earnings forecasts [10]