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Here's Why Dow Inc. (DOW) Fell More Than Broader Market

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Dow Inc. (DOW - Free Report) closed the most recent trading day at $23.45, moving -2.17% from the previous trading session. This move lagged the S&P 500's daily loss of 0.16%. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 0.59%.

The materials science's shares have seen an increase of 4.54% over the last month, surpassing the Basic Materials sector's gain of 4.07% and the S&P 500's loss of 0.21%.

Investors will be eagerly watching for the performance of Dow Inc. in its upcoming earnings disclosure. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.53 billion, down 8.45% from the year-ago period.

DOW's full-year Zacks Consensus Estimates are calling for earnings of -$0.99 per share and revenue of $40.03 billion. These results would represent year-over-year changes of -157.89% and -6.82%, respectively.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.91% increase. Dow Inc. is currently sporting a Zacks Rank of #3 (Hold).

The Chemical - Diversified industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 211, this industry ranks in the bottom 15% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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