We recently published a list of Why These 15 Industrial Stocks Are up the Most So Far in 2025. In this article, we are going to take a look at where DNOW Inc. (NYSE:DNOW) stands against other industrial stocks that are up the most so far in 2025.
Industrial stocks are sensitive to the economic cycle. Many of them have already fallen victim to the downturn and have reversed much of their earlier gains from the past few years. However, 2025 is shaping up to be a breakout year for industrial stocks elsewhere. The industrial sector is very broad, and you’ll always find winners that outpace expectations and draw the attention of investors who once overlooked these workhorse companies.
Manufacturing and industrial firms have doubled down on digital transformation and have poured resources into automation to boost efficiency. This investment is paying off as companies become more agile and better equipped to handle shocks, whether from geopolitical tensions, labor shortages, or shifting customer needs. It’s worth looking into the biggest winners so far this year, as they could continue building on the momentum.
Methodology
For this article, I screened the best-performing industrial stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
An oil rig platform at sea, surrounded by a golden sunrise.
DNOW Inc. (NYSE:DNOW)
Number of Hedge Fund Holders In Q4 2024: 26
DNOW Inc. (NYSE:DNOW) is a global distributor of energy and industrial products, as well as engineered process and production equipment, serving sectors like oil and gas, chemicals, mining, and renewables.
The stock is up significantly so far in 2025 due to its robust 2024 financial performance and shareholder-friendly capital allocation. In February, DNOW Inc. (NYSE:DNOW) reported a strong finish to 2024, with full-year revenue of $2.37 billion and net income of $81 million. The company generated $289 million in free cash flow. That’s nearly double its prior projections, and it ended the year with $256 million in cash and no long-term debt.
DNOW also completed the acquisition of Trojan Rentals for $114 million, expanding its capabilities in pump rentals and industrial automation. The Q4 2024 earnings beat, with EBITDA and gross margins exceeding expectations, led to a significant stock price surge.
The consensus price target of $19 implies 22.6% upside.
DNOW Inc. (NYSE:DNOW) stock is up 19.29% year-to-date.
Overall, DNOW ranks 13th on our list of industrial stocks that are up the most so far in 2025. While we acknowledge the potential of DNOW as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DNOW but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
