Dow Inc. (DOW) Stock Sinks As Market Gains: What You Should Know

Dow Inc. (DOW) closed at $52.29 in the latest trading session, marking a -0.21% move from the prior day. This change lagged the S&P 500's daily gain of 1.68%. At the same time, the Dow added 1.06%, and the tech-heavy Nasdaq lost 1.7%.

Prior to today's trading, shares of the materials science had lost 13.13% over the past month. This has lagged the Basic Materials sector's loss of 4.99% and the S&P 500's loss of 6.68% in that time.

Wall Street will be looking for positivity from Dow Inc. as it approaches its next earnings report date. On that day, Dow Inc. is projected to report earnings of $0.46 per share, which would represent a year-over-year decline of 80.34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.37 billion, down 25.51% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.47 per share and revenue of $49.14 billion, which would represent changes of -44.48% and -13.65%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Dow Inc.Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Dow Inc. is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Dow Inc. has a Forward P/E ratio of 15.09 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.3.

Meanwhile, DOW's PEG ratio is currently 3.02. 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. The Chemical - Diversified industry currently had an average PEG ratio of 2.09 as of yesterday's close.

The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 26% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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