In the latest trading session, Dow Inc. (DOW) closed at $69.04, marking no change from the previous day. This change lagged the S&P 500's daily gain of 0.74%.
Heading into today, shares of the materials science had gained 9.26% over the past month, lagging the Basic Materials sector's gain of 9.95% and outpacing the S&P 500's gain of 3.21% in that time.
The company is expected to report EPS of $2.03, up 880.77% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.68 billion, up 51.84% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6 per share and revenue of $47.99 billion. These totals would mark changes of +261.45% and +24.52%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for DOW. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 42.14% higher within the past month. DOW currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, DOW is currently trading at a Forward P/E ratio of 11.5. This valuation marks a discount compared to its industry's average Forward P/E of 15.93.
We can also see that DOW currently has a PEG ratio of 0.42. 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 Chemical - Diversified industry currently had an average PEG ratio of 1.64 as of yesterday's close.
The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 21% 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.
To follow DOW in the coming trading sessions, be sure to utilize Zacks.com.
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