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Dow Inc. (DOW) Stock Moves -1.31%: What You Should Know

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Dow Inc. (DOW - Free Report) closed at $51.38 in the latest trading session, marking a -1.31% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.65%. At the same time, the Dow lost 1.63%, and the tech-heavy Nasdaq lost 6.65%.

Heading into today, shares of the materials science had lost 8.41% over the past month, lagging the Basic Materials sector's loss of 2.51% and the S&P 500's gain of 0.3% in that time.

Dow Inc. will be looking to display strength as it nears its next earnings release. On that day, Dow Inc. is projected to report earnings of $0.46 per share, which would represent a year-over-year decline of 80.34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.37 billion, down 25.51% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.43 per share and revenue of $49.11 billion, which would represent changes of -45.12% and -13.7%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Dow Inc.These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 1.18% lower. Dow Inc. is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Dow Inc.'s current valuation metrics, including its Forward P/E ratio of 15.17. Its industry sports an average Forward P/E of 12.84, so we one might conclude that Dow Inc. is trading at a premium comparatively.

Meanwhile, DOW's PEG ratio is currently 3.03. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DOW's industry had an average PEG ratio of 2.1 as of yesterday's close.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 32% 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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