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Dow Inc. (DOW) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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Dow Inc. (DOW - Free Report) closed the latest trading day at $51.07, indicating a +0.35% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.8% for the day. Elsewhere, the Dow saw an upswing of 0.18%, while the tech-heavy Nasdaq appreciated by 1.37%.

The materials science's shares have seen an increase of 5.36% over the last month, surpassing the Basic Materials sector's gain of 2.76% and the S&P 500's gain of 4.39%.

The investment community will be closely monitoring the performance of Dow Inc. in its forthcoming earnings report. The company is expected to report EPS of $0.39, down 15.22% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $10.43 billion, showing a 12.07% drop compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.18 per share and revenue of $44.41 billion. These totals would mark changes of -65.12% and -21.95%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Dow Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.

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 0.63% lower. Dow Inc. is currently a Zacks Rank #3 (Hold).

Investors should also note Dow Inc.'s current valuation metrics, including its Forward P/E ratio of 23.32. This signifies a premium in comparison to the average Forward P/E of 15.94 for its industry.

It is also worth noting that DOW currently has a PEG ratio of 4.66. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Chemical - Diversified industry had an average PEG ratio of 2.27.

The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 231, putting it in the bottom 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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