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

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Dow Inc. (DOW - Free Report) closed at $27.36 in the latest trading session, marking a -2.01% move from the prior day. This change lagged the S&P 500's daily gain of 0.79%. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 1.52%.

Coming into today, shares of the materials science had lost 19.52% in the past month. In that same time, the Basic Materials sector lost 8.04%, while the S&P 500 lost 1.82%.

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 23, 2026. The company's earnings per share (EPS) are projected to be $1.31, reflecting a 411.9% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $12.16 billion, up 20.36% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3 per share and revenue of $43.64 billion, which would represent changes of +419.15% and +9.19%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Dow Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 26.4% rise in the Zacks Consensus EPS estimate. Dow Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Dow Inc. is holding a Forward P/E ratio of 9.32. This valuation marks a discount compared to its industry average Forward P/E of 15.91.

It's also important to note that DOW currently trades at a PEG ratio of 0.17. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Chemical - Diversified industry had an average PEG ratio of 1.23.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 39% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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