Dow Inc. (DOW) Gains As Market Dips: What You Should Know
Dow Inc. (DOW) closed at $57.79 in the latest trading session, marking a +1.05% move from the prior day. This change outpaced the S&P 500's 1.05% loss on the day. At the same time, the Dow lost 1.02%, and the tech-heavy Nasdaq lost 1.64%.
Heading into today, shares of the materials science had lost 1.6% over the past month, outpacing the Basic Materials sector's loss of 4.44% and lagging the S&P 500's gain of 0.01% in that time.
Wall Street will be looking for positivity from Dow Inc. as it approaches its next earnings report date. In that report, analysts expect Dow Inc. to post earnings of $0.46 per share. This would mark a year-over-year decline of 80.34%. Our most recent consensus estimate is calling for quarterly revenue of $11.37 billion, down 25.51% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.47 per share and revenue of $49.14 billion. These totals would mark changes of -44.48% and -13.65%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Dow Inc.Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 18.42% lower. Dow Inc. is currently a Zacks Rank #3 (Hold).
In terms of valuation, Dow Inc. is currently trading at a Forward P/E ratio of 16.47. Its industry sports an average Forward P/E of 12.46, so we one might conclude that Dow Inc. is trading at a premium comparatively.
Meanwhile, DOW's PEG ratio is currently 3.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Chemical - Diversified was holding an average PEG ratio of 2.17 at yesterday's closing price.
The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 42% 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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