Dow Inc. (DOW) Advances But Underperforms Market: Key Facts
The latest trading session saw Dow Inc. (DOW) ending at $57.68, denoting a +0.44% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 1.12%. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 1.54%.
The the stock of materials science has risen by 4.82% in the past month, lagging the Basic Materials sector's gain of 5.41% and overreaching the S&P 500's gain of 2.06%.
The upcoming earnings release of Dow Inc. will be of great interest to investors. The company's earnings report is expected on April 25, 2024. The company is forecasted to report an EPS of $0.47, showcasing a 18.97% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.7 billion, down 9.75% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $3.12 per share and a revenue of $44.73 billion, demonstrating changes of +39.29% and +0.23%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Dow Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.09% lower. At present, Dow Inc. boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Dow Inc. is currently exchanging hands at a Forward P/E ratio of 18.43. This valuation marks a discount compared to its industry's average Forward P/E of 18.83.
It's also important to note that DOW currently trades at a PEG ratio of 0.79. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Chemical - Diversified industry stood at 1.21 at the close of the market yesterday.
The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 217, putting it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Dow Inc. (DOW) : Free Stock Analysis Report
