In the latest trading session, Dow Inc. (DOW) closed at $52.77, marking a -0.13% move from the previous day. This change was narrower than the S&P 500's 0.79% loss on the day. At the same time, the Dow lost 1.07%, and the tech-heavy Nasdaq lost 2.71%.
Coming into today, shares of the materials science had lost 1.91% in the past month. In that same time, the Basic Materials sector gained 1.43%, while the S&P 500 gained 4.16%.
Dow Inc. will be looking to display strength as it nears its next earnings release, which is expected to be July 25, 2023. The company is expected to report EPS of $0.71, down 69.26% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.38 billion, down 27.36% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.97 per share and revenue of $47.67 billion. These totals would mark changes of -52.48% and -16.23%, respectively, from last year.
Any recent changes to analyst estimates for Dow Inc. should also be noted by investors. 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. 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 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. Within the past 30 days, our consensus EPS projection has moved 6.77% lower. Dow Inc. is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Dow Inc. is currently trading at a Forward P/E ratio of 17.8. This valuation marks a premium compared to its industry's average Forward P/E of 14.43.
Also, we should mention that DOW has a PEG ratio of 3.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Chemical - Diversified industry currently had an average PEG ratio of 1.37 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 170, which puts it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
