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Dow Inc. (DOW) Rises But Trails Market: What Investors Should Know
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The most recent trading session ended with Dow Inc. (DOW - Free Report) standing at $54.97, reflecting a +0.71% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 1.03%. At the same time, the Dow added 0.87%, and the tech-heavy Nasdaq gained 1.26%.
Heading into today, shares of the materials science had gained 6.19% over the past month, outpacing the Basic Materials sector's gain of 6.06% and the S&P 500's gain of 3.01% in that time.
The investment community will be paying close attention to the earnings performance of Dow Inc. in its upcoming release. The company is slated to reveal its earnings on January 25, 2024. The company's upcoming EPS is projected at $0.40, signifying a 13.04% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $10.36 billion, indicating a 12.63% decrease compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.22 per share and revenue of $44.36 billion. These totals would mark changes of -64.48% and -22.05%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Dow Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, the Zacks Consensus EPS estimate has moved 0.52% higher. Dow Inc. currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Dow Inc. is currently trading at a Forward P/E ratio of 24.56. Its industry sports an average Forward P/E of 17.07, so one might conclude that Dow Inc. is trading at a premium comparatively.
Investors should also note that DOW has a PEG ratio of 4.91 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Chemical - Diversified stocks are, on average, holding a PEG ratio of 2.42 based on yesterday's closing prices.
The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 223, putting it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Dow Inc. (DOW) Rises But Trails Market: What Investors Should Know
The most recent trading session ended with Dow Inc. (DOW - Free Report) standing at $54.97, reflecting a +0.71% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 1.03%. At the same time, the Dow added 0.87%, and the tech-heavy Nasdaq gained 1.26%.
Heading into today, shares of the materials science had gained 6.19% over the past month, outpacing the Basic Materials sector's gain of 6.06% and the S&P 500's gain of 3.01% in that time.
The investment community will be paying close attention to the earnings performance of Dow Inc. in its upcoming release. The company is slated to reveal its earnings on January 25, 2024. The company's upcoming EPS is projected at $0.40, signifying a 13.04% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $10.36 billion, indicating a 12.63% decrease compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.22 per share and revenue of $44.36 billion. These totals would mark changes of -64.48% and -22.05%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Dow Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, the Zacks Consensus EPS estimate has moved 0.52% higher. Dow Inc. currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Dow Inc. is currently trading at a Forward P/E ratio of 24.56. Its industry sports an average Forward P/E of 17.07, so one might conclude that Dow Inc. is trading at a premium comparatively.
Investors should also note that DOW has a PEG ratio of 4.91 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Chemical - Diversified stocks are, on average, holding a PEG ratio of 2.42 based on yesterday's closing prices.
The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 223, putting it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.