In This Article:
In the latest trading session, Dow Inc. (DOW) closed at $37.44, marking a -0.9% move from the previous day. The stock's change was more than the S&P 500's daily loss of 1.78%. Elsewhere, the Dow lost 0.99%, while the tech-heavy Nasdaq lost 2.61%.
Prior to today's trading, shares of the materials science had lost 0.45% over the past month. This has lagged the Basic Materials sector's loss of 0.13% and was narrower than the S&P 500's loss of 3.48% in that time.
The investment community will be paying close attention to the earnings performance of Dow Inc. in its upcoming release. The company is expected to report EPS of $0.11, down 80.36% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $10.29 billion, reflecting a 4.44% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.02 per share and a revenue of $42.81 billion, indicating changes of +18.13% and -0.36%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Dow Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 10.76% downward. Dow Inc. is currently a Zacks Rank #5 (Strong Sell).
Valuation is also important, so investors should note that Dow Inc. has a Forward P/E ratio of 18.69 right now. Its industry sports an average Forward P/E of 15.44, 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 0.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Chemical - Diversified industry had an average PEG ratio of 0.99.