In the latest trading session, DowDuPont (DWDP - Free Report) closed at $59.44, marking a -0.65% move from the previous day. This move lagged the S&P 500's daily loss of 0.25%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 0.53%.
Prior to today's trading, shares of the specialty chemicals maker had gained 0.86% over the past month. This has outpaced the Basic Materials sector's loss of 2.37% and the S&P 500's loss of 2.35% in that time.
Investors will be hoping for strength from DWDP as it approaches its next earnings release, which is expected to be February 7, 2019. In that report, analysts expect DWDP to post earnings of $0.88 per share. This would mark year-over-year growth of 6.02%. Meanwhile, our latest consensus estimate is calling for revenue of $21.11 billion, up 5.18% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.15 per share and revenue of $86.71 billion. These totals would mark changes of +22.06% and +38.78%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for DWDP. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.35% lower. DWDP currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, DWDP is holding a Forward P/E ratio of 14.42. For comparison, its industry has an average Forward P/E of 12.69, which means DWDP is trading at a premium to the group.
It is also worth noting that DWDP currently has a PEG ratio of 1.44. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Chemical - Diversified was holding an average PEG ratio of 1.13 at yesterday's closing price.
The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 225, which puts it in the bottom 12% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.