DowDuPont (DWDP) closed at $55.92 in the latest trading session, marking a +1.65% move from the prior day. This change outpaced the S&P 500's 1.09% gain on the day. Elsewhere, the Dow gained 0.84%, while the tech-heavy Nasdaq added 1.42%.
Prior to today's trading, shares of the specialty chemicals maker had lost 2.19% over the past month. This has lagged the Basic Materials sector's loss of 0.72% and the S&P 500's gain of 1.18% in that time.
Investors will be hoping for strength from DWDP as it approaches its next earnings release. The company is expected to report EPS of $0.93, down 16.96% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $20.06 billion, down 6.75% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.05 per share and revenue of $84.53 billion. These totals would mark changes of -1.46% and -1.69%, respectively, from last year.
Any recent changes to analyst estimates for DWDP should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 1.11% lower. DWDP currently has a Zacks Rank of #4 (Sell).
Investors should also note DWDP's current valuation metrics, including its Forward P/E ratio of 13.57. Its industry sports an average Forward P/E of 13.35, so we one might conclude that DWDP is trading at a premium comparatively.
Investors should also note that DWDP has a PEG ratio of 1.36 right now. 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 1.04 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 211, which puts it in the bottom 18% 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.
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