Yahoo Finance Dow Inc. (DOW) Gains But Lags Market: What You Should Know
Dow Inc. (DOW) closed the most recent trading day at $49, moving +0.45% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.99%.
Prior to today's trading, shares of the materials science had lost 7.96% over the past month. This has lagged the Basic Materials sector's loss of 7.94% and the S&P 500's gain of 0.42% in that time.
Investors will be hoping for strength from Dow Inc. as it approaches its next earnings release. On that day, Dow Inc. is projected to report earnings of $0.71 per share, which would represent a year-over-year decline of 69.26%. Our most recent consensus estimate is calling for quarterly revenue of $12.21 billion, down 22.03% from the year-ago period.
DOW's full-year Zacks Consensus Estimates are calling for earnings of $3.18 per share and revenue of $48.49 billion. These results would represent year-over-year changes of -49.12% and -14.78%, respectively.
Any recent changes to analyst estimates for Dow Inc. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Dow Inc. is currently a Zacks Rank #3 (Hold).
In terms of valuation, Dow Inc. is currently trading at a Forward P/E ratio of 15.32. For comparison, its industry has an average Forward P/E of 13.23, which means Dow Inc. is trading at a premium to the group.
We can also see that DOW currently has a PEG ratio of 3.06. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DOW's industry had an average PEG ratio of 1.4 as of yesterday's close.
The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% 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.
To follow DOW in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dow Inc. (DOW) : Free Stock Analysis Report
