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Dow Unveils its First Bio-Circular Product for Carpet Tile Backing

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Dow Inc. (DOW - Free Report) recently introduced its first bio-circular product for the flooring sector, adding to the ENGAGE REN Polyolefin Elastomers (POE) product family. The flooring innovation will be used to create carpet tile backing that is dimensionally stable and provides fiber adhesion support.

This new bio-circular solution delivers a similar high performance as the rest of the ENGAGE POE line while assisting customers in achieving their sustainability goals. ENGAGE REN POEs provide a viable substitute to virgin petrochemical products by using alternative feedstocks derived from biological residues and responsibly obtained waste, such as used cooking oil, and transforming them into bio-circular products with a smaller carbon footprint. 

This innovation is a critical step in extending DOW’s circularity solutions into new markets. DOW can give waste a new life by providing high-performing bio-circular feedstock solutions to flooring customers, potentially lowering carbon footprints and dependency on fossil feedstocks. 

Dow envisions a lower-carbon plastics ecosystem, and bio-circular materials are a vital component. Dow's "Transform the Waste" goal is to commercialize 3 million metric tons of circular and renewable solutions by 2030, which will include the use of plastic waste and other feedstocks, such as bio-circular. These raw materials, derived from waste residues or byproducts of an alternative manufacturing process, help to promote a circular economy by allowing for material reuse.

Shares of DOW have lost 4% over the past year compared with a 9.4% decline of its industry.

Zacks Investment Research
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Dow, on its second-quarter call, said that it is focused on delivering sequential earnings improvement while navigating through the slower global macroeconomic environment in the second half of 2024. While Dow is seeing growing demand in many markets that it serves, it does not expect a significant change in demand in building & construction and consumer durables in 2024. It will continue driving higher sales through its innovation portfolio and diverse product mix. Dow remains on track to deliver higher earnings and shareholder returns by leveraging its global scale, strategically advantaged cost positions and growth investments.

Dow Inc. Price and Consensus

Dow Inc. Price and Consensus

Dow Inc. price-consensus-chart | Dow Inc. Quote

Zacks Rank & Key Picks

DOW currently carries a Zacks Rank #5 (Strong Sell).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and Hawkins, Inc. (HWKN - Free Report) . 

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.9%. The company's shares have soared 111.6% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Eldorado’s current-year earnings is pegged at $1.35 per share, indicating a year-over-year rise of 136.8%. EGO, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.3%. The company's shares have rallied roughly 68.1% in the past year.

The Zacks Consensus Estimate for Hawkins’ current fiscal-year earnings is pegged at $4.14, indicating a rise of 15.3% from year-ago levels. The Zacks Consensus Estimate for HWKN’s current fiscal-year earnings has increased 12.8% in the past 60 days. HWKN, a Zacks Rank #1 stock, has rallied around 100.9% in the past year. 

 

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