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Is Dow Inc. (DOW) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Dow Inc. (DOW - Free Report) . DOW is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.27, which compares to its industry's average of 13.54. DOW's Forward P/E has been as high as 29.56 and as low as 10.27, with a median of 20.61, all within the past year.

DOW is also sporting a PEG ratio of 0.37. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DOW's PEG compares to its industry's average PEG of 0.69. Over the past 52 weeks, DOW's PEG has been as high as 8.89 and as low as 0.37, with a median of 4.45.

Finally, investors should note that DOW has a P/CF ratio of 9.84. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.83. Over the past year, DOW's P/CF has been as high as 81.12 and as low as 9.43, with a median of 32.40.

These are just a handful of the figures considered in Dow Inc.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DOW is an impressive value stock right now.


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