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DowDuPont (DWDP) Gains But Lags Market: What You Should Know

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In the latest trading session, DowDuPont closed at $55.62, marking a +0.42% move from the previous day. This change lagged the S&P 500's 0.48% gain on the day. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.8%.

Prior to today's trading, shares of the specialty chemicals maker had gained 4% over the past month. This has outpaced the Basic Materials sector's gain of 2.43% and the S&P 500's loss of 2.09% in that time.

DWDP will be looking to display strength as it nears its next earnings release, which is expected to be January 31, 2019. In that report, analysts expect DWDP to post earnings of $0.89 per share. This would mark year-over-year growth of 7.23%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.11 billion, up 5.18% from the year-ago period.

It is also important to note the recent changes to analyst estimates for DWDP. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, the Zacks Consensus EPS estimate remained stagnant. DWDP currently has a Zacks Rank of #3 (Hold).

Digging into valuation, DWDP currently has a Forward P/E ratio of 11.63. For comparison, its industry has an average Forward P/E of 10.84, which means DWDP is trading at a premium to the group.

Meanwhile, DWDP's PEG ratio is currently 1.16. 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. The Chemical - Diversified industry currently had an average PEG ratio of 0.93 as of yesterday's close.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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