DowDuPont (DWDP) Outpaces Stock Market Gains: What You Should Know
DowDuPont (DWDP) closed at $39.15 in the latest trading session, marking a +0.64% move from the prior day. This change outpaced the S&P 500's 0.05% gain on the day. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 0.3%.
Prior to today's trading, shares of the specialty chemicals maker had lost 29.54% over the past month. This has lagged the Basic Materials sector's gain of 4.9% and the S&P 500's gain of 3.08% 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 May 2, 2019. The company is expected to report EPS of $0.68, down 39.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.02 billion, down 58.05% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.23 per share and revenue of $40.44 billion, which would represent changes of -45.74% and -52.96%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for DWDP. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 44.98% lower within the past month. DWDP is currently sporting a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, DWDP is holding a Forward P/E ratio of 17.44. This valuation marks a premium compared to its industry's average Forward P/E of 13.36.
It is also worth noting that DWDP currently has a PEG ratio of 1.74. 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 1.08 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 158, which puts it in the bottom 39% 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.
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