DNOW - NOW's Medium-Term Prospect Can Outweigh Cash Flow Concerns
- Higher energy prices and completions activity will bolster DNOW's revenues in the medium term.
- Higher water usage following the increase in fracking activities will benefit its midstream segment and will lead to higher deployment of the mobile horizontal pumps.
- Higher steel prices will keep its margins and cash flows under pressure in the short term.
- With zero debt and ample liquidity, the stock can provide a moderate return to the investors.
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NOW's Medium-Term Prospect Can Outweigh Cash Flow Concerns