Dow Inc. (DOW) closed at $50.34 in the latest trading session, marking a -0.06% move from the prior day. This change lagged the S&P 500's daily gain of 1.31%. At the same time, the Dow added 1%, and the tech-heavy Nasdaq lost 4.19%.
Heading into today, shares of the materials science had lost 5.85% over the past month, lagging the Basic Materials sector's loss of 5.45% and the S&P 500's gain of 2.12% in that time.
Wall Street will be looking for positivity from Dow Inc. as it approaches its next earnings report date. The company is expected to report EPS of $0.71, down 69.26% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. Dow Inc. currently has a Zacks Rank of #3 (Hold).
Investors should also note Dow Inc.'s current valuation metrics, including its Forward P/E ratio of 15.82. Its industry sports an average Forward P/E of 13.29, so we one might conclude that Dow Inc. is trading at a premium comparatively.
We can also see that DOW currently has a PEG ratio of 3.16. 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. The Chemical - Diversified industry currently had an average PEG ratio of 1.34 as of yesterday's close.
The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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