Dow Inc. (DOW) closed at $33.75 in the latest trading session, marking a -2.93% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.22%. Elsewhere, the Dow gained 0.72%, while the tech-heavy Nasdaq added 0.21%.
Shares of the materials science have depreciated by 14.13% over the course of the past month, underperforming the Basic Materials sector's gain of 2.87%, and the S&P 500's gain of 6.04%.
Market participants will be closely following the financial results of Dow Inc. in its upcoming release. The company is predicted to post an EPS of $0.79, indicating a 288.1% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $12.16 billion, indicating a 20.36% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.37 per share and a revenue of $43.64 billion, indicating changes of +352.13% and +9.19%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dow Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 witnessed an unchanged state. Dow Inc. is currently a Zacks Rank #1 (Strong Buy).
Investors should also note Dow Inc.'s current valuation metrics, including its Forward P/E ratio of 14.67. This denotes a discount relative to the industry average Forward P/E of 17.32.
It's also important to note that DOW currently trades at a PEG ratio of 0.26. 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. By the end of yesterday's trading, the Chemical - Diversified industry had an average PEG ratio of 1.35.
The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 41% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).