DowDuPont (DWDP - Free Report) closed at $38.48 in the latest trading session, marking a +0.67% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.35%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 0.7%.
Heading into today, shares of the specialty chemicals maker had lost 31.22% over the past month, lagging the Basic Materials sector's gain of 4.61% and the S&P 500's gain of 5.14% in that time.
Wall Street will be looking for positivity from DWDP as it approaches its next earnings report date. This is expected to be May 2, 2019. The company is expected to report EPS of $0.68, down 39.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.02 billion, down 58.05% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.23 per share and revenue of $40.44 billion, which would represent changes of -45.74% and -52.96%, respectively, from the prior year.
Any recent changes to analyst estimates for DWDP should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 44.98% lower within the past month. DWDP is currently a Zacks Rank #5 (Strong Sell).
Digging into valuation, DWDP currently has a Forward P/E ratio of 17.14. This represents a premium compared to its industry's average Forward P/E of 13.62.
We can also see that DWDP currently has a PEG ratio of 1.71. 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 1.06 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 204, which puts it in the bottom 20% 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.
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