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Dow Inc. (DOW) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Dow Inc. (DOW - Free Report) closed at $56.26, marking a +0.82% move from the previous day. This change outpaced the S&P 500's 0.14% gain on the day. Meanwhile, the Dow lost 0.18%, and the Nasdaq, a tech-heavy index, added 1.54%.
Coming into today, shares of the materials science had lost 7.78% in the past month. In that same time, the Basic Materials sector lost 3.08%, while the S&P 500 lost 4.07%.
Dow Inc. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.46, down 80.34% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.37 billion, down 25.51% from the prior-year quarter.
DOW's full-year Zacks Consensus Estimates are calling for earnings of $3.47 per share and revenue of $49.14 billion. These results would represent year-over-year changes of -44.48% and -13.65%, 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. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.48% lower. 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 16.07. Its industry sports an average Forward P/E of 13.26, so we one might conclude that Dow Inc. is trading at a premium comparatively.
It is also worth noting that DOW currently has a PEG ratio of 3.21. 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 2.17 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 190, which puts it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Dow Inc. (DOW) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Dow Inc. (DOW - Free Report) closed at $56.26, marking a +0.82% move from the previous day. This change outpaced the S&P 500's 0.14% gain on the day. Meanwhile, the Dow lost 0.18%, and the Nasdaq, a tech-heavy index, added 1.54%.
Coming into today, shares of the materials science had lost 7.78% in the past month. In that same time, the Basic Materials sector lost 3.08%, while the S&P 500 lost 4.07%.
Dow Inc. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.46, down 80.34% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.37 billion, down 25.51% from the prior-year quarter.
DOW's full-year Zacks Consensus Estimates are calling for earnings of $3.47 per share and revenue of $49.14 billion. These results would represent year-over-year changes of -44.48% and -13.65%, 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. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.48% lower. 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 16.07. Its industry sports an average Forward P/E of 13.26, so we one might conclude that Dow Inc. is trading at a premium comparatively.
It is also worth noting that DOW currently has a PEG ratio of 3.21. 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 2.17 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 190, which puts it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.