Dow Inc. (DOW) Exceeds Market Returns: Some Facts to Consider

In the latest close session, Dow Inc. (DOW) was up +2.69% at $31.28. The stock outpaced the S&P 500's daily gain of 0.46%. Elsewhere, the Dow saw an upswing of 0.56%, while the tech-heavy Nasdaq appreciated by 0.45%.

The stock of materials science has risen by 0.43% in the past month, leading the Basic Materials sector's loss of 0% and undershooting the S&P 500's gain of 2%.

The investment community will be closely monitoring the performance of Dow Inc. in its forthcoming earnings report. In that report, analysts expect Dow Inc. to post earnings of $0.78 per share. This would mark year-over-year growth of 510.53%. Our most recent consensus estimate is calling for quarterly revenue of $11.22 billion, up 12.52% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.42 per share and revenue of $43.31 billion. These totals would mark changes of +357.45% and +8.37%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dow Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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. The Zacks Consensus EPS estimate has moved 3.59% lower within the past month. Dow Inc. is currently a Zacks Rank #3 (Hold).

In the context of valuation, Dow Inc. is at present trading with a Forward P/E ratio of 12.6. This denotes a discount relative to the industry average Forward P/E of 17.2.

Investors should also note that DOW has a PEG ratio of 0.39 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Chemical - Diversified industry had an average PEG ratio of 1.22 as trading concluded yesterday.

The Chemical - Diversified industry is part of the Basic Materials sector. Currently, this industry holds a Zacks Industry Rank of 102, positioning it in the top 42% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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