Dow Inc. (DOW) Stock Drops Despite Market Gains: Important Facts to Note
The latest trading session saw Dow Inc. (DOW) ending at $56.74, denoting a -0.53% adjustment from its last day's close. This change lagged the S&P 500's 0.63% gain on the day. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.82%.
The the stock of materials science has risen by 2.81% in the past month, lagging the Basic Materials sector's gain of 5.32% and overreaching the S&P 500's gain of 1.76%.
Investors will be eagerly watching for the performance of Dow Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 25, 2024. The company is predicted to post an EPS of $0.47, indicating a 18.97% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $10.7 billion, reflecting a 9.75% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.12 per share and revenue of $44.73 billion, which would represent changes of +39.29% and +0.23%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dow Inc. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.09% decrease. Dow Inc. presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Dow Inc. is presently trading at a Forward P/E ratio of 18.31. This signifies no noticeable deviation in comparison to the average Forward P/E of 18.31 for its industry.
We can additionally observe that DOW currently boasts a PEG ratio of 0.79. 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 industry currently had an average PEG ratio of 1.14 as of yesterday's close.
The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 18% 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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