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Dow Inc. (DOW) Gains But Lags Market: What You Should Know

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In the latest trading session, Dow Inc. (DOW - Free Report) closed at $63.99, marking a +1.19% move from the previous day. This move lagged the S&P 500's daily gain of 1.66%. Elsewhere, the Dow gained 1.39%, while the tech-heavy Nasdaq added 1.24%.

Prior to today's trading, shares of the materials science had gained 3.08% over the past month. This has outpaced the Basic Materials sector's loss of 1.29% and the S&P 500's gain of 1.91% in that time.

Investors will be hoping for strength from DOW as it approaches its next earnings release, which is expected to be April 22, 2021. In that report, analysts expect DOW to post earnings of $1.05 per share. This would mark year-over-year growth of 77.97%. Meanwhile, our latest consensus estimate is calling for revenue of $10.71 billion, up 9.65% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.22 per share and revenue of $43.67 billion, which would represent changes of +154.22% and +13.32%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 19.97% higher. DOW is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that DOW has a Forward P/E ratio of 14.98 right now. For comparison, its industry has an average Forward P/E of 18.38, which means DOW is trading at a discount to the group.

It is also worth noting that DOW currently has a PEG ratio of 0.78. 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. DOW's industry had an average PEG ratio of 1.61 as of yesterday's close.

The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 79, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow DOW in the coming trading sessions, be sure to utilize Zacks.com.


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