Dow Inc. (DOW) closed the last trading session at USD 70.37, a movement of -0.34% from the previous day. That change fell short of the S&P 500’s daily gain of 0.88%.
Today, materials science stocks were up 2.27% over the past month. At the same time, the materials sector rose 4.83%, while the S&P 500 rose 0.15%.
Investors will be hoping for strength from DOW as it nears its next earnings release, which is expected on July 22, 2021. In this report, analysts expect DOW to post earnings of $ 2.06 per share. This would mean a growth of 892.31% compared to the previous year. Our latest consensus estimate was for revenue of $ 12.68 billion, up 51.84% from the year-ago quarter.
DOW’s Zacks Consensus Estimates for the full year project earnings per share of $ 6.12 and sales of $ 47.99 billion. These results would represent changes of +268.67% and +24.52%, respectively, compared to the previous year.
Any recent changes in analyst estimates for DOW should also be considered by investors. These most recent revisions typically reflect developments in short-term business trends. Therefore, positive estimate revisions reflect analysts’ optimism about the company’s business and profitability.
Our research shows that these changes in estimates correlate directly with short-term stock prices. We developed the Zacks Rank to take advantage of this phenomenon. Our system takes these changes in estimates into account and provides a clear, actionable rating model.
The Zacks Rank system, which ranges from # 1 (Strong Buy) to # 5 (Strong Sell), has an impressive, externally audited track record of outperformance, with # 1 stocks posting an average annual return of + 25% since 1988 Zack’s Consensus EPS estimate rose 1.87% last month. DOW currently has a Zacks rank of # 1 (Strong Buy).
Looking at the valuation, DOW holds a forward P / E of 11.55. For comparison, the industry has an average forward P / E of 15.54, which means DOW is trading at a discount to the group.
Investors should also note that DOW currently has a PEG ratio of 0.42. This metric is used in a similar way to the famous P / E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Chemical – Diversified held an average PEG ratio of 1.2 at yesterday’s closing price.
The chemical – diversified industry belongs to the basic materials sector. This group has a Zacks industry ranking of 62, making it one of the top 25% of all over 250 industries.
The Zacks Industry Rank is a best-to-worst ranking based on the average Zacks rank of each company in each of those sectors. Our research shows that the top-rated 50% of industries outperform the bottom half by a factor of 2 to 1.
Track all of these price action metrics and many more on Zacks.com.
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