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Why Dow Inc. (DOW) Outpaced the Stock Market Today
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The latest trading session saw Dow Inc. (DOW - Free Report) ending at $54.82, denoting a +1.16% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 0.18%. Elsewhere, the Dow saw an upswing of 0.07%, while the tech-heavy Nasdaq appreciated by 0.1%.
The materials science's stock has climbed by 6.11% in the past month, exceeding the Basic Materials sector's gain of 3.98% and the S&P 500's gain of 2.75%.
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 is predicted to post an EPS of $0.40, indicating a 13.04% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $10.36 billion, indicating a 12.63% decline compared to the corresponding quarter of the prior year.
Any recent changes to analyst estimates for Dow Inc. should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.37% lower. Dow Inc. is currently a Zacks Rank #4 (Sell).
Looking at valuation, Dow Inc. is presently trading at a Forward P/E ratio of 16.27. Its industry sports an average Forward P/E of 15.97, so one might conclude that Dow Inc. is trading at a premium comparatively.
We can also see that DOW currently has a PEG ratio of 3.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Chemical - Diversified industry was having an average PEG ratio of 2.3.
The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 237, which puts it in the bottom 6% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Why Dow Inc. (DOW) Outpaced the Stock Market Today
The latest trading session saw Dow Inc. (DOW - Free Report) ending at $54.82, denoting a +1.16% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 0.18%. Elsewhere, the Dow saw an upswing of 0.07%, while the tech-heavy Nasdaq appreciated by 0.1%.
The materials science's stock has climbed by 6.11% in the past month, exceeding the Basic Materials sector's gain of 3.98% and the S&P 500's gain of 2.75%.
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 is predicted to post an EPS of $0.40, indicating a 13.04% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $10.36 billion, indicating a 12.63% decline compared to the corresponding quarter of the prior year.
Any recent changes to analyst estimates for Dow Inc. should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.37% lower. Dow Inc. is currently a Zacks Rank #4 (Sell).
Looking at valuation, Dow Inc. is presently trading at a Forward P/E ratio of 16.27. Its industry sports an average Forward P/E of 15.97, so one might conclude that Dow Inc. is trading at a premium comparatively.
We can also see that DOW currently has a PEG ratio of 3.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Chemical - Diversified industry was having an average PEG ratio of 2.3.
The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 237, which puts it in the bottom 6% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.