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In the latest trading session, Dow Inc. (DOW) closed at $51.55, marking a +0.94% move from the previous day. This change outpaced the S&P 500’s 0.12% loss on the day. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 0.06%.
Heading into today, shares of the materials science had gained 9.85% over the past month, lagging the Basic Materials sector’s gain of 13.61% and outpacing the S&P 500’s gain of 5.93% in that time.
Wall Street will be looking for positivity from Dow Inc. as it approaches its next earnings report date. In that report, analysts expect Dow Inc. to post earnings of $0.57 per share. This would mark a year-over-year decline of 73.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.08 billion, down 15.91% from the year-ago period.
DOW’s full-year Zacks Consensus Estimates are calling for earnings of $6.37 per share and revenue of $56.63 billion. These results would represent year-over-year changes of -29.06% and +3.02%, respectively.
Investors might also notice recent changes to analyst estimates for Dow Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Dow Inc. is holding a Zacks Rank of #5 (Strong Sell) right now.
Looking at its valuation, Dow Inc. is holding a Forward P/E ratio of 8.02. This valuation marks a discount compared to its industry’s average Forward P/E of 9.99.
Meanwhile, DOW’s PEG ratio is currently 1.6. 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 industry currently had an average PEG ratio of 1.88 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 218, which puts it in the bottom 14% 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.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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