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Stock impact report

3 Reasons DNOW is Risky and 1 Stock to Buy Instead [Yahoo! Finance]

NOW Inc. (DNOW) 
Last now inc. earnings: 2/19 06:45 am Check Earnings Report
US:NYSE Investor Relations: ir.distributionnow.com/investor-overview
Company Research Source: Yahoo! Finance
This was partly driven by its softer quarterly results and might have investors contemplating their next move. Is there a buying opportunity in DNOW, or does it present a risk to your portfolio? See what our analysts have to say in our full research report, it's free Why Is DNOW Not Exciting? Even though the stock has become cheaper, we're cautious about DNOW. Here are three reasons there are better opportunities than DNOW and a stock we'd rather own. 1. Weak Operating Margin Could Cause Trouble Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development. DNOW was profitable over the last five years but held back by its large cost base. Its average operating margin of 2.8% was weak for an industrials business. This result isn't too surprising given its low Show less Read more
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