DowDuPont (DWDP) Gains As Market Dips: What You Should Know
DowDuPont (DWDP) closed at $57.98 in the latest trading session, marking a +0.89% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.76%. Meanwhile, the Dow lost 0.82%, and the Nasdaq, a tech-heavy index, lost 0.9%.
Prior to today's trading, shares of the specialty chemicals maker had lost 4.63% over the past month. This has lagged the Basic Materials sector's loss of 3.13% and the S&P 500's loss of 1.41% in that time.
Wall Street will be looking for positivity from DWDP as it approaches its next earnings report date. This is expected to be February 7, 2019. In that report, analysts expect DWDP to post earnings of $0.88 per share. This would mark year-over-year growth of 6.02%. Our most recent consensus estimate is calling for quarterly revenue of $21.11 billion, up 5.18% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.15 per share and revenue of $86.71 billion. These totals would mark changes of +22.06% and +38.78%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for DWDP. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
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. The Zacks Consensus EPS estimate has moved 0.24% lower within the past month. DWDP is currently a Zacks Rank #3 (Hold).
Digging into valuation, DWDP currently has a Forward P/E ratio of 13.85. Its industry sports an average Forward P/E of 12.36, so we one might conclude that DWDP is trading at a premium comparatively.
It is also worth noting that DWDP currently has a PEG ratio of 1.39. 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. DWDP's industry had an average PEG ratio of 1.1 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 218, which puts it in the bottom 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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