Yahoo Finance Dow Inc. (DOW) Gains But Lags Market: What You Should Know
The latest trading session saw Dow Inc. (DOW) ending at $53.20, denoting a +0.08% adjustment from its last day's close. This change lagged the S&P 500's 0.16% gain on the day. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.49%.
Shares of the materials science have depreciated by 8.41% over the course of the past month, underperforming the Basic Materials sector's loss of 4.96% and the S&P 500's gain of 3.22%.
The investment community will be closely monitoring the performance of Dow Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on July 25, 2024. The company's upcoming EPS is projected at $0.73, signifying a 2.67% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11 billion, down 3.67% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $2.96 per share and a revenue of $43.51 billion, demonstrating changes of +32.14% and -2.48%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Dow Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.87% lower. Currently, Dow Inc. is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Dow Inc. is currently being traded at a Forward P/E ratio of 17.93. This expresses a premium compared to the average Forward P/E of 17.18 of its industry.
One should further note that DOW currently holds a PEG ratio of 0.77. 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 average PEG ratio for the Chemical - Diversified industry stood at 1.07 at the close of the market yesterday.
The Chemical - Diversified industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 96, finds itself in the top 39% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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