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Dow Inc. (DOW) Rises But Trails Market: What Investors Should Know
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In the latest market close, Dow Inc. (DOW - Free Report) reached $52.81, with a +0.4% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 1.23% for the day. Meanwhile, the Dow experienced a rise of 1.06%, and the technology-dominated Nasdaq saw an increase of 1.7%.
Prior to today's trading, shares of the materials science had lost 4.31% over the past month. This has was narrower than the Basic Materials sector's loss of 6.13% and lagged the S&P 500's gain of 0.94% in that time.
Investors will be eagerly watching for the performance of Dow Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 25, 2024. The company is forecasted to report an EPS of $0.41, showcasing a 10.87% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $10.32 billion, down 13.01% from the prior-year quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dow Inc. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.8% lower within the past month. Dow Inc. is currently a Zacks Rank #4 (Sell).
Looking at valuation, Dow Inc. is presently trading at a Forward P/E ratio of 15.92. This represents no noticeable deviation compared to its industry's average Forward P/E of 15.92.
It's also important to note that DOW currently trades at a PEG ratio of 3.18. 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 2.17 based on yesterday's closing prices.
The Chemical - Diversified industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 203, this industry ranks in the bottom 20% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Dow Inc. (DOW) Rises But Trails Market: What Investors Should Know
In the latest market close, Dow Inc. (DOW - Free Report) reached $52.81, with a +0.4% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 1.23% for the day. Meanwhile, the Dow experienced a rise of 1.06%, and the technology-dominated Nasdaq saw an increase of 1.7%.
Prior to today's trading, shares of the materials science had lost 4.31% over the past month. This has was narrower than the Basic Materials sector's loss of 6.13% and lagged the S&P 500's gain of 0.94% in that time.
Investors will be eagerly watching for the performance of Dow Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 25, 2024. The company is forecasted to report an EPS of $0.41, showcasing a 10.87% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $10.32 billion, down 13.01% from the prior-year quarter.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dow Inc. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.8% lower within the past month. Dow Inc. is currently a Zacks Rank #4 (Sell).
Looking at valuation, Dow Inc. is presently trading at a Forward P/E ratio of 15.92. This represents no noticeable deviation compared to its industry's average Forward P/E of 15.92.
It's also important to note that DOW currently trades at a PEG ratio of 3.18. 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 2.17 based on yesterday's closing prices.
The Chemical - Diversified industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 203, this industry ranks in the bottom 20% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.