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Dow Inc. (DOW) Stock Sinks As Market Gains: Here's Why

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Dow Inc. (DOW - Free Report) ended the recent trading session at $27.33, demonstrating a -1.37% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.72%. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 1.12%.

Coming into today, shares of the materials science had lost 18.43% in the past month. In that same time, the Basic Materials sector lost 5.59%, while the S&P 500 lost 0.9%.

The investment community will be closely monitoring the performance of Dow Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on July 23, 2026. The company is expected to report EPS of $1.28, up 404.76% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $12.01 billion, reflecting a 18.82% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.78 per share and revenue of $43.62 billion. These totals would mark changes of +395.74% and +9.15%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Dow Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 9.78% higher within the past month. Dow Inc. is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Dow Inc. is currently being traded at a Forward P/E ratio of 9.95. This indicates a discount in contrast to its industry's Forward P/E of 15.82.

Meanwhile, DOW's PEG ratio is currently 0.18. 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. As the market closed yesterday, the Chemical - Diversified industry was having an average PEG ratio of 1.25.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow DOW in the coming trading sessions, be sure to utilize Zacks.com.

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