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Why Dow Inc. (DOW) Outpaced the Stock Market Today

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Dow Inc. (DOW - Free Report) closed at $30.23 in the latest trading session, marking a +1.31% move from the prior day. This change outpaced the S&P 500's 0.28% gain on the day. Elsewhere, the Dow saw an upswing of 0.43%, while the tech-heavy Nasdaq appreciated by 0.09%.

Heading into today, shares of the materials science had lost 2.74% over the past month, lagging the Basic Materials sector's gain of 0.92% and the S&P 500's gain of 4.37%.

Analysts and investors alike will be keeping a close eye on the performance of Dow Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on July 24, 2025. On that day, Dow Inc. is projected to report earnings of -$0.08 per share, which would represent a year-over-year decline of 111.76%. Meanwhile, the latest consensus estimate predicts the revenue to be $10.35 billion, indicating a 5.2% decrease compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.27 per share and revenue of $41.66 billion. These totals would mark changes of -84.21% and -3.02%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dow Inc. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 38.08% downward. Currently, Dow Inc. is carrying a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Dow Inc. has a Forward P/E ratio of 112.03 right now. Its industry sports an average Forward P/E of 15.88, so one might conclude that Dow Inc. is trading at a premium comparatively.

Also, we should mention that DOW has a PEG ratio of 11.77. 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 industry had an average PEG ratio of 2.14 as trading concluded yesterday.

The Chemical - Diversified industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 213, this industry ranks in the bottom 14% of all industries, numbering over 250.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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