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Dow Inc. (DOW) Stock Sinks As Market Gains: What You Should Know

Dow Inc. (DOW) closed at $56.91 in the latest trading session, marking a -1.44% move from the prior day. This move lagged the S&P 500's daily gain of 0.3%.

Prior to today's trading, shares of the materials science had lost 3.2% over the past month. This has lagged the Basic Materials sector's loss of 2.71% and the S&P 500's loss of 2.37% in that time.

Wall Street will be looking for positivity from DOW as it approaches its next earnings report date. This is expected to be October 21, 2021. On that day, DOW is projected to report earnings of $2.57 per share, which would represent year-over-year growth of 414%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.37 billion, up 47.99% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.53 per share and revenue of $53.53 billion, which would represent changes of +413.86% and +38.88%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for DOW. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.07% higher within the past month. DOW is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, DOW is currently trading at a Forward P/E ratio of 6.77. This valuation marks a discount compared to its industry's average Forward P/E of 11.69.

We can also see that DOW currently has a PEG ratio of 0.25. 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 1.11 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 176, which puts it in the bottom 31% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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