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Dow Inc. (DOW) Dips More Than Broader Markets: What You Should Know

This story originally appeared on Zacks

Dow Inc. (DOW) closed at $58.96 in the latest trading session, marking a -1.16% move from the prior day. This move lagged the S&P 500’s daily loss of 0.24%. Elsewhere, the Dow lost 0.49%, while the tech-heavy Nasdaq lost 0.04%.

– Zacks

Coming into today, shares of the materials science had lost 0.65% in the past month. In that same time, the Basic Materials sector gained 7.21%, while the S&P 500 gained 0.73%.

Wall Street will be looking for positivity from Dow Inc. as it approaches its next earnings report date. This is expected to be April 21, 2022. In that report, analysts expect Dow Inc. to post earnings of $1.92 per share. This would mark year-over-year growth of 41.18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.25 billion, up 19.92% from the year-ago period.

DOW’s full-year Zacks Consensus Estimates are calling for earnings of $6.72 per share and revenue of $55.84 billion. These results would represent year-over-year changes of -25.17% and +1.58%, respectively.

Investors might also notice recent changes to analyst estimates for Dow Inc.These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Within the past 30 days, our consensus EPS projection has moved 1.85% higher. Dow Inc. currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Dow Inc. is currently trading at a Forward P/E ratio of 8.88. This represents a discount compared to its industry’s average Forward P/E of 12.77.

Also, we should mention that DOW has a PEG ratio of 0.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Chemical – Diversified was holding an average PEG ratio of 1.08 at yesterday’s closing price.

The Chemical – Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 41% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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