Can DNOW sustain its Q4 2024 earnings growth?

**DNOW's ability to sustain its Q4 2024 earnings growth is uncertain**. Here's why:

1. **Missed Revenue Expectations**: DNOW has a history of missing revenue expectations. In Q3 CY2024, it missed analyst estimates by 1.5%. This trend suggests potential challenges in sustaining growth momentum.
2. **Slowdown in Sales Growth**: DNOW's sales have shown a general decline over the past five years. This trend could indicate underlying issues that might hinder sustained earnings growth.
3. **Analyst Ratings and Price Target Adjustments**: There have been adjustments to analyst ratings and price targets, with some downgrades and price target reductions. These adjustments often reflect concerns about a company's future performance, which could imply that sustaining earnings growth might be challenging.
4. **Institutional Investor Dominance**: Institutional investors own a significant majority of DNOW's stock, with some recent changes in holdings. While institutional investments can be positive for a company's growth prospects, the high level of institutional ownership also suggests that any negative movements could be more pronounced.
5. **Economic Sensitivity**: DNOW's revenue streams are influenced by economic cycles and external factors like interest rates. The broader industrials sector's volatility can impact DNOW's performance, making it harder to sustain growth in a fluctuating environment.

In conclusion, while DNOW had a strong Q4 2024 performance, the company's historical misses on revenue expectations, slowdown in sales growth, analyst rating adjustments, high institutional ownership, and economic sensitivity suggest that sustaining this growth could be challenging.