Dow Inc. Shows Modest Gains As Earnings Report Approaches
In the latest market close, Dow Inc. (DOW) reached $53.11, representing a gain of +0.06% from the previous day. This performance trails the S&P 500, which rose by 0.4%. The Dow itself gained 0.09%, while the tech-heavy Nasdaq increased by 0.63%.
Monthly Performance Lags Behind Sector Peers
Over the past month, Dow’s stock has increased by 0.36%. However, this figure is significantly lower than the Basic Materials sector, which gained 7.19%, and the S&P 500’s overall rise of 3.76%.
Upcoming Earnings Report Draws Investor Interest
Investors are keenly awaiting Dow Inc.’s upcoming earnings report, scheduled for October 24, 2024. Analysts estimate an EPS of $0.46 for the quarter, representing a decline of 4.17% compared to the same period last year. Additionally, projected revenue is expected to be $10.73 billion, showing a slight decrease of 0.04% year-over-year.
Fiscal Year Forecasts Show Mixed Results
For the fiscal year, Zacks Consensus Estimates indicate earnings of $2.32 per share and revenue of $42.88 billion. These represent a growth of +3.57% in earnings but a decline of -3.91% in revenue compared to the previous year.
Analyst Estimates Offer Insight into Company Health
Recent adjustments to analyst estimates for Dow Inc. deserve attention, as they often mirror emerging business trends. Positive revisions suggest a more favorable view regarding the company’s health and profitability, potentially impacting stock performance.
Understanding the Zacks Rank System
The Zacks Rank is a proprietary rating system that reflects these estimate changes. It ranges from #1 (Strong Buy) to #5 (Strong Sell). Historically, Zacks #1 stocks have delivered an average annual gain of +25% since 1988. Currently, Dow Inc. holds a Zacks Rank of #5 (Strong Sell), with a 6.45% decrease in the EPS estimate within the last month.
Valuation Metrics Indicate Premium Pricing
Currently, Dow Inc. is traded at a Forward P/E ratio of 22.86, compared to an industry average of 18.9, suggesting it is priced at a premium. Additionally, Dow’s PEG ratio stands at 1.1, lower than the industry average of 1.27 as of yesterday’s close.
Industry Context and Rankings
The Chemical – Diversified industry, which includes Dow Inc., is part of the Basic Materials sector. It holds a Zacks Industry Rank of 208, placing it within the bottom 18% of over 250 industries. This ranking evaluates the strength of industry groups based on the average Zacks Rank of constituent stocks, where top-ranked industries typically outperform their lower-ranked counterparts.
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Investors are encouraged to visit Zacks.com for updates on these and other market metrics in the coming trading sessions.
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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.
