Back to top

Image: Bigstock

Dow Inc. (DOW) Stock Drops Despite Market Gains: Important Facts to Note

Read MoreHide Full Article

The latest trading session saw Dow Inc. (DOW - Free Report) ending at $56.86, denoting a -0.8% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.03%. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq added 0.12%.

Shares of the materials science have appreciated by 1.02% over the course of the past month, outperforming the Basic Materials sector's gain of 0.24% and the S&P 500's loss of 0.9%.

The investment community will be paying close attention to the earnings performance of Dow Inc. in its upcoming release. The company is slated to reveal its earnings on April 25, 2024. The company is expected to report EPS of $0.47, down 18.97% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $10.7 billion, reflecting a 9.72% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.12 per share and revenue of $44.67 billion, which would represent changes of +39.29% and +0.1%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Dow Inc. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.28% fall in the Zacks Consensus EPS estimate. At present, Dow Inc. boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Dow Inc. is presently trading at a Forward P/E ratio of 18.36. This indicates a premium in contrast to its industry's Forward P/E of 18.25.

It's also important to note that DOW currently trades at a PEG ratio of 0.79. 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 was holding an average PEG ratio of 1.11 at yesterday's closing price.

The Chemical - Diversified industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 186, positioning it in the bottom 27% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Published in