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Dow Inc. (DOW) Gains But Lags Market: What You Should Know
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Dow Inc. (DOW - Free Report) closed at $64.60 in the latest trading session, marking a +1.03% move from the prior day. This move lagged the S&P 500's daily gain of 1.18%. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, added 1.76%.
Prior to today's trading, shares of the materials science had gained 2.71% over the past month. This has lagged the Basic Materials sector's gain of 3.87% and the S&P 500's gain of 4.55% in that time.
Wall Street will be looking for positivity from DOW as it approaches its next earnings report date. This is expected to be April 22, 2021. On that day, DOW is projected to report earnings of $0.70 per share, which would represent year-over-year growth of 18.64%. Meanwhile, our latest consensus estimate is calling for revenue of $10.71 billion, up 9.65% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.22 per share and revenue of $43.67 billion, which would represent changes of +154.22% and +13.32%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for DOW. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 16.85% higher. DOW is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, DOW is currently trading at a Forward P/E ratio of 15.14. This represents a discount compared to its industry's average Forward P/E of 18.2.
Investors should also note that DOW has a PEG ratio of 0.78 right now. 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. Chemical - Diversified stocks are, on average, holding a PEG ratio of 1.59 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 86, which puts it in the top 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.
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Dow Inc. (DOW) Gains But Lags Market: What You Should Know
Dow Inc. (DOW - Free Report) closed at $64.60 in the latest trading session, marking a +1.03% move from the prior day. This move lagged the S&P 500's daily gain of 1.18%. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, added 1.76%.
Prior to today's trading, shares of the materials science had gained 2.71% over the past month. This has lagged the Basic Materials sector's gain of 3.87% and the S&P 500's gain of 4.55% in that time.
Wall Street will be looking for positivity from DOW as it approaches its next earnings report date. This is expected to be April 22, 2021. On that day, DOW is projected to report earnings of $0.70 per share, which would represent year-over-year growth of 18.64%. Meanwhile, our latest consensus estimate is calling for revenue of $10.71 billion, up 9.65% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.22 per share and revenue of $43.67 billion, which would represent changes of +154.22% and +13.32%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for DOW. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 16.85% higher. DOW is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, DOW is currently trading at a Forward P/E ratio of 15.14. This represents a discount compared to its industry's average Forward P/E of 18.2.
Investors should also note that DOW has a PEG ratio of 0.78 right now. 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. Chemical - Diversified stocks are, on average, holding a PEG ratio of 1.59 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 86, which puts it in the top 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.