Dow Inc. (DOW), a major materials science and chemical producer, has seen its stock increase over 70% year-to-date, reaching nearly a 52-week high of $42 per share. This surge is attributed to global supply chain disruptions, particularly following the closure of the Strait of Hormuz, which has led to a significant rise in petrochemical prices and tightened inventories worldwide.
CEO Jim Fitterling reported notable price increases for key products, with ethylene and polyethylene seeing spikes of 10¢ per lb in March, 30¢ in April, and expected increases of 20¢ in May. The ongoing supply constraints have propelled U.S. exports, particularly for polyethylene, as Asia faces shortages, enhancing Dow’s market share and pricing power.
Analysts have sharply raised earnings expectations for Dow, with fiscal year 2026 EPS estimates jumping from projections of a loss of $0.12 to gains of $2.37. As of now, Dow’s stock trades at a forward earnings multiple of 16X, with a robust 3.54% annual dividend yield amidst a projected 8% revenue increase in FY26.
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