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Dow Inc. (DOW) Laps the Stock Market: Here's Why

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Dow Inc. (DOW - Free Report) ended the recent trading session at $27.15, demonstrating a +1.23% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.8%. At the same time, the Dow added 0.94%, and the tech-heavy Nasdaq gained 0.97%.

Prior to today's trading, shares of the materials science had lost 5.36% lagged the Basic Materials sector's gain of 2.02% and the S&P 500's gain of 5.12%.

Market participants will be closely following the financial results of Dow Inc. in its upcoming release. The company plans to announce its earnings on July 24, 2025. The company is forecasted to report an EPS of -$0.02, showcasing a 102.94% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $10.35 billion, showing a 5.2% drop compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.38 per share and a revenue of $41.66 billion, signifying shifts of -77.78% and -3.02%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Dow Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been a 12.91% fall in the Zacks Consensus EPS estimate. Currently, Dow Inc. is carrying a Zacks Rank of #4 (Sell).

With respect to valuation, Dow Inc. is currently being traded at a Forward P/E ratio of 70.77. This indicates a premium in contrast to its industry's Forward P/E of 14.24.

Meanwhile, DOW's PEG ratio is currently 8.09. 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. The Chemical - Diversified was holding an average PEG ratio of 1.93 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 225, positioning 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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