Dow Inc. (DOW) Stock Moves -0.21%: What You Should Know

In the latest trading session, Dow Inc. (DOW Free Report) closed at $53.07, marking a -0.21% move from the previous day. This change was narrower than the S&P 500’s daily loss of 0.85%. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq lost 0.05%.

Coming into today, shares of the materials science had lost 6.98% in the past month. In that same time, the Basic Materials sector lost 1.7%, while the S&P 500 lost 0.97%.

Wall Street will be looking for positivity from Dow Inc. as it approaches its next earnings report date. This is expected to be January 27, 2022. In that report, analysts expect Dow Inc. to post earnings of $2.22 per share. This would mark year-over-year growth of 174.07%. Our most recent consensus estimate is calling for quarterly revenue of $14.32 billion, up 33.74% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.05 per share and revenue of $54.93 billion, which would represent changes of +445.18% and +42.53%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Dow Inc.These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.32% lower. Dow Inc. is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Dow Inc. is holding a Forward P/E ratio of 5.87. Its industry sports an average Forward P/E of 11.74, so we one might conclude that Dow Inc. is trading at a discount comparatively.

Investors should also note that DOW has a PEG ratio of 0.2 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Chemical – Diversified industry currently had an average PEG ratio of 1.11 as of yesterday’s close.

The Chemical – Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 104, putting it in the top 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on

Read More

Zacks Equity Research