The Dow Chemical Company (DOW) just hit a fresh high breaching the psychologically-important $50 per share mark for the first time. This level is also close to the 52 week high for Dow which has added roughly 13% in the last 12 weeks, suggesting that decent momentum is present in DOW.
But after this fresh 52 week high and the positive price momentum, investors have to be wondering if Dow can continue this march higher or if a pullback is overdue. We think that the answer might lie in the recent earnings estimate revision activity that is taking place in DOW.
According to our research, Dow has seen pretty positive earnings estimate revision activity lately, which means that analysts are becoming more bullish on the company’s prospects. In fact, 11 estimates has gone higher in the past two months, compared to no downward revision, while the consensus estimate has moved in the right direction as well.
We actually give DOW a Zacks Rank #2 (Buy) based on this information and think that the move higher for this company might have some room left to run. So while trading has certainly been good lately, estimates suggest that there might be more to come and that there is still time to get in on this buy ranked stock for more gains in the near term.
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