Dow Inc. (DOW) closed the most recent trading day at $53.98, moving +0.82% from the previous trading session. The stock outpaced the S&P 500’s daily gain of 0.67%. Elsewhere, the Dow gained 0.73%, while the tech-heavy Nasdaq added 0.94%.
Coming into today, shares of the materials science had lost 2.55% in the past month. In that same time, the Basic Materials sector lost 4.28%, while the S&P 500 lost 3.8%.
Investors will be hoping for strength from Dow Inc. as it approaches its next earnings release. In that report, analysts expect Dow Inc. to post earnings of $0.42 per share. This would mark a year-over-year decline of 62.16%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.34 billion, down 26.73% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.27 per share and revenue of $43.94 billion, which would represent changes of -63.68% and -22.78%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Dow Inc.These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 13.98% lower. Dow Inc. is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Dow Inc. has a Forward P/E ratio of 23.63 right now. This valuation marks a premium compared to its industry’s average Forward P/E of 15.27.
It is also worth noting that DOW currently has a PEG ratio of 4.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. DOW’s industry had an average PEG ratio of 2.37 as of yesterday’s close.
The Chemical – Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 230, putting it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DOW in the coming trading sessions, be sure to utilize Zacks.com.
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