Dow Inc. (DOW Quick QuoteDOW - Free Report) and Guangdong Delian Group Co., Ltd. recently signed a memorandum of understanding (MoU) at the 7th China International Import Expo. The two companies will work to extend the use of post-consumer recycled (PCR) resins in the automobile industry, assisting the industry's transition to circularity. 

Delian Group has successfully used Dow's REVOLOOP Recycled Plastics Resins in the packaging of auto care items. This unique approach not only lowers the carbon footprint of packaging by significantly reducing dependency on virgin resins, but it also marks the first commercial application of Dow's REVOLOOP Recycled Plastics Resins in the auto care sector.

As global climate change worsens and resources become scarcer, the automotive market's sustainability becomes more vital. Embracing sustainable materials can help to address these concerns by providing consumers with more environmentally responsible options and promoting a circular economy in automotive services. Dow is committed to developing new solutions for a circular economy and expanding the REVOLOOP Recycled Plastics Resins line to satisfy customers' sustainability goals. 

The signing of this MoU is a critical step in Dow's commitment to the "Transform the Waste" campaign. This collaboration seeks not only to improve the packaging use of post-consumer recycled resins in the automotive market, but also to stimulate innovation that will reposition waste as a valuable resource. Dow and Delian Group will collaborate to develop sustainable solutions that contribute to a circular economy where resources are reused and repurposed, reducing environmental impact and ensuring long-term resource sustainability.

DOW’s shares have lost 14.8% in a year compared with the industry’s 1.1% rise.

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Dow, on its third-quarter call, said that it will continue to operate with discipline as it capitalizes on areas of demand strength while leveraging its scale and advantaged cost positions on a global basis. Its strong financials will continue to support its growth investments focused on higher-value businesses and regions, where it has a competitive cost advantage and seeing resilient demand. DOW expects these investments to deliver more than $3 billion in underlying earnings by 2030.

DOW’s Rank & Key Picks

DOW currently carries a Zacks Rank #5 (Strong Sell).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS Quick QuoteCRS - Free Report) , IAMGOLD Corporation (IAG Quick QuoteIAG - Free Report) and CF Industries Inc. (CF Quick QuoteCF - Free Report) . 

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. The company's shares have soared 157.2% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for IAG’s current-year earnings is pegged at 56 cents, indicating a year-over-year rise of 522.2%. The Zacks Consensus Estimate for IAG's current-year earnings has been going up in the past 30 days. IAG, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 203.4%. The company's shares have rallied roughly 112% in the past year.

The Zacks Consensus Estimate for CF’s current-year earnings is pegged at $6.32 per share. CF, a Zacks Rank #1 stock, beat the consensus estimate in two of the last four quarters while missed twice, with the average earnings surprise being 10.3%. CF has rallied around 13.1% in the past year.