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Dow Inc. (DOW) Stock Declines While Market Improves: Some Information for Investors

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Dow Inc. (DOW - Free Report) closed at $37.19 in the latest trading session, marking a -1.12% move from the prior day. This change lagged the S&P 500's daily gain of 1.08%. At the same time, the Dow added 0.92%, and the tech-heavy Nasdaq gained 1.41%.

The the stock of materials science has fallen by 5.31% in the past month, lagging the Basic Materials sector's loss of 1.64% and overreaching the S&P 500's loss of 8.26%.

Market participants will be closely following the financial results of Dow Inc. in its upcoming release. The company is predicted to post an EPS of $0.09, indicating an 83.93% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $10.29 billion, indicating a 4.44% downward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.92 per share and revenue of $42.49 billion. These totals would mark changes of +12.28% and -1.11%, respectively, from last year.

Any recent changes to analyst estimates for Dow Inc. should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 10.86% fall in the Zacks Consensus EPS estimate. As of now, Dow Inc. holds a Zacks Rank of #5 (Strong Sell).

Looking at valuation, Dow Inc. is presently trading at a Forward P/E ratio of 19.58. This represents a premium compared to its industry's average Forward P/E of 15.71.

It is also worth noting that DOW currently has a PEG ratio of 1.04. 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. With its current Zacks Industry Rank of 206, this industry ranks in the bottom 18% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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