Dow Inc. (DOW) Stock Declines While Market Improves: Some Information for Investors
Dow Inc. (DOW) closed the latest trading day at $56.86, indicating a -0.21% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.51%. Meanwhile, the Dow experienced a rise of 0.2%, and the technology-dominated Nasdaq saw an increase of 0.58%.
Shares of the materials science witnessed a gain of 5.44% over the previous month, beating the performance of the Basic Materials sector with its gain of 4.25% and the S&P 500's gain of 2.94%.
The investment community will be closely monitoring the performance of Dow Inc. in its forthcoming earnings report. On that day, Dow Inc. is projected to report earnings of $0.47 per share, which would represent a year-over-year decline of 18.97%. Alongside, our most recent consensus estimate is anticipating revenue of $10.7 billion, indicating a 9.75% downward movement from the same quarter last year.
DOW's full-year Zacks Consensus Estimates are calling for earnings of $3.12 per share and revenue of $44.73 billion. These results would represent year-over-year changes of +39.29% and +0.23%, respectively.
Investors should also pay attention to any latest changes in 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 shifted 1.09% downward. At present, Dow Inc. boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Dow Inc. is currently trading at a Forward P/E ratio of 18.29. For comparison, its industry has an average Forward P/E of 18.29, which means Dow Inc. is trading at no noticeable deviation to the group.
We can also see that DOW currently has a PEG ratio of 0.79. 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. By the end of yesterday's trading, the Chemical - Diversified industry had an average PEG ratio of 1.22.
The Chemical - Diversified industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 228, this industry ranks in the bottom 10% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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