In the latest market close, Dow Inc. (DOW – Free Report) reached $53.11, with a +0.06% movement compared to the previous day. The stock’s change was less than the S&P 500’s daily gain of 0.4%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.63%.
The the stock of materials science has risen by 0.36% in the past month, lagging the Basic Materials sector’s gain of 7.19% and the S&P 500’s gain of 3.76%.
The investment community will be closely monitoring the performance of Dow Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on October 24, 2024. The company is expected to report EPS of $0.46, down 4.17% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $10.73 billion, indicating a 0.04% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.32 per share and a revenue of $42.88 billion, representing changes of +3.57% and -3.91%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Dow Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 6.45% decrease. Dow Inc. is currently a Zacks Rank #5 (Strong Sell).
With respect to valuation, Dow Inc. is currently being traded at a Forward P/E ratio of 22.86. Its industry sports an average Forward P/E of 18.9, so one might conclude that Dow Inc. is trading at a premium comparatively.
It’s also important to note that DOW currently trades at a PEG ratio of 1.1. 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. DOW’s industry had an average PEG ratio of 1.27 as of yesterday’s close.
The Chemical – Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 208, which puts it in the bottom 18% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
