Dow Inc. (DOW) Stock Drops Despite Market Gains: Important Facts to Note

In the latest market close, Dow Inc. (DOW) reached $27.20, with a -1.95% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.41% for the day. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 0.67%.Coming into today, shares of the materials science had lost 8.81% in the past month. In that same time, the Basic Materials sector gained 2.3%, while the S&P 500 gained 6.13%.The upcoming earnings release of Dow Inc. will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0, reflecting a 100% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $10.38 billion, indicating a 4.91% decrease compared to the same quarter of the previous year.Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.33 per share and revenue of $41.61 billion, indicating changes of -80.7% and -3.14%, respectively, compared to the previous year.Investors might also notice recent changes to analyst estimates for Dow Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 37.2% decrease. Dow Inc. currently has a Zacks Rank of #4 (Sell).In terms of valuation, Dow Inc. is currently trading at a Forward P/E ratio of 84.03. This denotes a premium relative to the industry's average Forward P/E of 14.41.Meanwhile, DOW's PEG ratio is currently 9.61. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Chemical - Diversified stocks are, on average, holding a PEG ratio of 1.83 based on yesterday's closing prices.The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 205, which puts it in the bottom 18% 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.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dow Inc. (DOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks