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Dow Inc. (DOW) Dips More Than Broader Markets: What You Should Know

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Dow Inc. (DOW - Free Report) closed the most recent trading day at $62.90, moving -1.69% from the previous trading session. This move lagged the S&P 500's daily loss of 0.14%.

Heading into today, shares of the materials science had gained 4.51% over the past month, outpacing the Basic Materials sector's loss of 2.8% and the S&P 500's gain of 3.13% in that time.

Wall Street will be looking for positivity from DOW as it approaches its next earnings report date. This is expected to be October 21, 2021. In that report, analysts expect DOW to post earnings of $2.52 per share. This would mark year-over-year growth of 404%. Meanwhile, our latest consensus estimate is calling for revenue of $14.17 billion, up 45.91% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $8.35 per share and revenue of $53.1 billion, which would represent changes of +403.01% and +37.77%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for DOW. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. DOW is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that DOW has a Forward P/E ratio of 7.66 right now. Its industry sports an average Forward P/E of 12.17, so we one might conclude that DOW is trading at a discount comparatively.

Also, we should mention that DOW has a PEG ratio of 0.28. 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 was holding an average PEG ratio of 1.03 at yesterday's closing price.

The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 35% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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