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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 at $54.39 in the latest trading session, marking a -0.95% move from the prior day. This move lagged the S&P 500's daily loss of 0.72%.

Heading into today, shares of the materials science had lost 6.55% over the past month, lagging the Basic Materials sector's loss of 1.14% and the S&P 500's gain of 0.11% in that time.

Wall Street will be looking for positivity from Dow Inc. as it approaches its next earnings report date. This is expected to be January 27, 2022. On that day, Dow Inc. is projected to report earnings of $2.16 per share, which would represent year-over-year growth of 166.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.32 billion, up 33.74% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9 per share and revenue of $54.91 billion, which would represent changes of +442.17% and +42.47%, respectively, from the prior year.

Any recent changes to analyst estimates for Dow Inc. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

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 0.94% lower. Dow Inc. is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Dow Inc. currently has a Forward P/E ratio of 6.1. This valuation marks a discount compared to its industry's average Forward P/E of 13.06.

It is also worth noting that DOW currently has a PEG ratio of 0.2. 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. The Chemical - Diversified industry currently had an average PEG ratio of 1.16 as of yesterday's close.

The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 104, putting it in the top 41% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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