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Dow Inc. (DOW) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Dow Inc. (DOW - Free Report) closed at $52.43, marking a -0.93% move from the previous day. This change lagged the S&P 500's 0.39% gain on the day.

Prior to today's trading, shares of the materials science had lost 0.45% over the past month. This has lagged the Basic Materials sector's gain of 2.31% and the S&P 500's gain of 3.16% 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 July 25, 2023. In that report, analysts expect Dow Inc. to post earnings of $0.70 per share. This would mark a year-over-year decline of 69.7%. Our most recent consensus estimate is calling for quarterly revenue of $11.33 billion, down 27.67% from the year-ago period.

DOW's full-year Zacks Consensus Estimates are calling for earnings of $2.96 per share and revenue of $47.63 billion. These results would represent year-over-year changes of -52.64% and -16.3%, respectively.

Investors might also notice recent changes to analyst estimates for Dow Inc.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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 5.73% lower. Dow Inc. is currently a Zacks Rank #4 (Sell).

Looking at its valuation, Dow Inc. is holding a Forward P/E ratio of 17.89. This represents a premium compared to its industry's average Forward P/E of 14.99.

Meanwhile, DOW's PEG ratio is currently 3.58. 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. Chemical - Diversified stocks are, on average, holding a PEG ratio of 1.46 based on yesterday's closing prices.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 203, which puts it in the bottom 20% 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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