NOW Sees Rating Upgrade as Revenue Streams Grow and Undervaluation Provides Opportunity

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NOW ($NYSE:DNOW) Inc. is a publicly traded company, with its stock listed on the New York Stock Exchange. Recently, the company has seen an upgrade in its rating from Standard & Poor’s, due to the continued growth in its revenue streams. The upgrade is also being attributed to the fact that NOW Inc. appears to be undervalued, creating significant opportunities for investors. The company has seen an increase in revenue growth over the past year or so, with profits from both the traditional retail and eCommerce sectors. This has enabled NOW Inc. to expand into new markets and create innovative products and services. As a result, the company has seen its stock price rise steadily during this time, leading to the upgrade in its rating from Standard & Poor’s.

In addition, analysts have noted that NOW Inc. is currently undervalued. This has led to the stock being seen as a promising investment opportunity, particularly given its expanding market presence and robust financial performance. Overall, NOW Inc. has seen an upgrade in its rating attributed to its growing revenue streams and undervaluation. This has created a strong investment opportunity for investors, who are keen to capitalize on the company’s potential for further growth.

Earnings

NOW Inc. recently saw a rating upgrade as the company reported strong earnings in its latest earning report of FY2023 Q1 as of March 31 2023. The company earned a total revenue of 584.0M USD and a net income of 31.0M USD, representing a 23.5% increase in total revenue and a 3.3% increase in net income compared to the previous year. This marks a remarkable success for the company, as NOW INC’s total revenue had reached only 361.0M USD three years ago. This growth could suggest that NOW INC is significantly undervalued, presenting an opportunity for potential investors.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Now Inc. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Now Inc. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Now Inc. More…

Key Ratios Snapshot

Some of the financial key ratios for Now Inc are shown below. More…

Price History

On Wednesday, NOW Inc. saw its stock price rise 4.1%, closing at $9.3, up from its previous closing price of $9.0. This marked a notable positive step for the company, which had previously been undervalued in the market. The stock price increase highlights the growth potential of NOW Inc., which is now being recognized in the market.

A number of analysts have noted the undervaluation of the company, meaning that there is opportunity to capitalize on its stock price as it experiences further growth. This rating upgrade not only signals a potential for greater returns, but also serves as an indication that NOW Inc.’s financial performance is on the upswing. Live Quote…

Analysis

At GoodWhale, we’ve taken a close look at the fundamentals of NOW INC, and our analysis reveals that it is a medium risk investment in terms of financial and business aspects. We have also detected two risk warnings in the income sheet and balance sheet, which is why we recommend that investors become registered users so they can access our full analysis and make an informed decision. Our team has been working hard to make sure our Risk Ratings are accurate and unbiased so that investors can make the best decision for their portfolio. More…

Peers

NOW Inc is an American provider of oilfield products and services with operations in the United States, Canada, Latin America, the Middle East, Africa, and Asia Pacific. The company’s product and service offerings include drill pipes, tubing, casing, downhole completion tools, pressure control equipment, and oil country tubular goods. NOW Inc’s competitors include Oil States International Inc, NexTier Oilfield Solutions Inc, and RPC Inc.

– Oil States International Inc ($NYSE:OIS)

The company has a market cap of 460.1M as of 2022 and a Return on Equity of -1.47%. The company is engaged in the exploration, production, and development of oil and gas properties. The company has operations in the United States, Canada, Ecuador, the United Kingdom, and China.

– NexTier Oilfield Solutions Inc ($NYSE:NEX)

NexTier Oilfield Solutions Inc is a leading provider of oilfield services. The company has a market cap of 2.58B and a ROE of 20.02%. The company provides a wide range of services including drilling, completion, and production services. The company has a strong presence in the United States and Canada.

– RPC Inc ($NYSE:RES)

RPC Inc is a publicly traded company with a market capitalization of $2.21 billion as of 2022. The company has a return on equity of 16.65%. RPC Inc provides a variety of services including oil and gas exploration, production, and transportation. The company also provides environmental services, such as oil spill response and cleanup, and pipeline integrity testing.

Summary

NOW Inc., a leading industrial distributor, is attracting investors due to its strong revenue stream and its undervaluation compared to the market. The company has seen a steady increase in its revenue over the past couple of years, and analysts have been quick to upgrade their ratings of the stock, citing its potential for further growth. On the day of the rating upgrade, the stock price increased significantly, suggesting that the market is beginning to appreciate NOW Inc. as a potential long-term investment. Investors should continue to monitor the company closely given its strong fundamentals and growing revenue stream.