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In the latest trading session, Dow Inc. (DOW) closed at $68.42, marking a -0.35% move from the previous day. This change lagged the S&P 500's 0.08% gain on the day.
Heading into today, shares of the materials science had gained 7.18% over the past month, outpacing the Basic Materials sector's gain of 4.56% and the S&P 500's gain of 0.41% in that time.
Investors will be hoping for strength from DOW as it approaches its next earnings release. On that day, DOW is projected to report earnings of $2.03 per share, which would represent year-over-year growth of 880.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.68 billion, up 51.84% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6 per share and revenue of $47.99 billion, which would represent changes of +261.45% and +24.52%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for DOW. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 31.85% higher. DOW currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that DOW has a Forward P/E ratio of 11.44 right now. Its industry sports an average Forward P/E of 15.22, so we one might conclude that DOW is trading at a discount comparatively.
Meanwhile, DOW's PEG ratio is currently 0.41. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DOW's industry had an average PEG ratio of 1.22 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 69, which puts it in the top 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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