Dow Inc. (DOW) Stock Sinks As Market Gains: Here's Why

In the latest close session, Dow Inc. (DOW) was down 1.72% at $34.79. The stock trailed the S&P 500, which registered a daily gain of 0.41%. Meanwhile, the Dow experienced a rise of 1.73%, and the technology-dominated Nasdaq saw a decrease of 0.09%. The materials science's shares have seen a decrease of 8.05% over the last month, not keeping up with the Basic Materials sector's gain of 3.22% and the S&P 500's gain of 4.59%.Investors will be eagerly watching for the performance of Dow Inc. in its upcoming earnings disclosure. In that report, analysts expect Dow Inc. to post earnings of $0.85 per share. This would mark year-over-year growth of 302.38%. In the meantime, our current consensus estimate forecasts the revenue to be $12.16 billion, indicating a 20.36% growth compared to the corresponding quarter of the prior year. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.37 per share and revenue of $43.64 billion. These totals would mark changes of +352.13% and +9.19%, respectively, from last year. Investors might also notice recent changes to analyst estimates for Dow Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Dow Inc. presently features a Zacks Rank of #1 (Strong Buy). In terms of valuation, Dow Inc. is currently trading at a Forward P/E ratio of 14.94. This denotes a discount relative to the industry average Forward P/E of 16.55. Meanwhile, DOW's PEG ratio is currently 0.27. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Chemical - Diversified stocks are, on average, holding a PEG ratio of 1.27 based on yesterday's closing prices. The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 45% of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions. Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks