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Dow Inc. (DOW) Gains But Lags Market: What You Should Know
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In the latest trading session, Dow Inc. (DOW - Free Report) closed at $58.44, marking a +0.72% move from the previous day. This change lagged the S&P 500's 0.76% gain on the day. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq lost 0.98%.
Coming into today, shares of the materials science had lost 3.65% in the past month. In that same time, the Basic Materials sector lost 4.58%, while the S&P 500 lost 3.91%.
Dow Inc. will be looking to display strength as it nears its next earnings release. In that report, analysts expect Dow Inc. to post earnings of $0.46 per share. This would mark a year-over-year decline of 80.34%. Our most recent consensus estimate is calling for quarterly revenue of $11.37 billion, down 25.51% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.47 per share and revenue of $49.14 billion, which would represent changes of -44.48% and -13.65%, respectively, from the prior year.
Any recent changes to analyst estimates for Dow Inc. should also be noted by investors. 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.48% lower. Dow Inc. currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Dow Inc. has a Forward P/E ratio of 16.71 right now. For comparison, its industry has an average Forward P/E of 13.69, which means Dow Inc. is trading at a premium to the group.
Investors should also note that DOW has a PEG ratio of 3.34 right now. 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 was holding an average PEG ratio of 2.22 at yesterday's closing price.
The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% 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
In the latest trading session, Dow Inc. (DOW - Free Report) closed at $58.44, marking a +0.72% move from the previous day. This change lagged the S&P 500's 0.76% gain on the day. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq lost 0.98%.
Coming into today, shares of the materials science had lost 3.65% in the past month. In that same time, the Basic Materials sector lost 4.58%, while the S&P 500 lost 3.91%.
Dow Inc. will be looking to display strength as it nears its next earnings release. In that report, analysts expect Dow Inc. to post earnings of $0.46 per share. This would mark a year-over-year decline of 80.34%. Our most recent consensus estimate is calling for quarterly revenue of $11.37 billion, down 25.51% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.47 per share and revenue of $49.14 billion, which would represent changes of -44.48% and -13.65%, respectively, from the prior year.
Any recent changes to analyst estimates for Dow Inc. should also be noted by investors. 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.48% lower. Dow Inc. currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Dow Inc. has a Forward P/E ratio of 16.71 right now. For comparison, its industry has an average Forward P/E of 13.69, which means Dow Inc. is trading at a premium to the group.
Investors should also note that DOW has a PEG ratio of 3.34 right now. 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 was holding an average PEG ratio of 2.22 at yesterday's closing price.
The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% 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.