Prior to today’s trading, shares of the materials science had lost 5.15% over the past month. This has lagged the Basic Materials sector’s loss of 4.58% and the S&P 500’s gain of 0.65% in that time.
DOW will be looking to display strength as it nears its next earnings release, which is expected to be October 21, 2021. On that day, DOW is projected to report earnings of $2.52 per share, which would represent year-over-year growth of 404%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.17 billion, up 45.91% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.35 per share and revenue of $53.1 billion. These totals would mark changes of +403.01% and +37.77%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. DOW is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that DOW has a Forward P/E ratio of 7.23 right now. This represents a discount compared to its industry’s average Forward P/E of 12.24.
We can also see that DOW currently has a PEG ratio of 0.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. DOW‘s industry had an average PEG ratio of 1.01 as of yesterday’s close.
The Chemical – Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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