That is why the Dow Inc. (DOW) fell more than the overall market

Dow Inc. (DOW) ended the last trading day at $51.58, down 0.67% from the previous trading session. This performance lagged the S&P 500's daily loss of 0.16%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq lost 0.3%.

The materials scientist's stock fell 1.05% last month, lagging the basic materials sector's 0.19% gain and the S&P 500's 3.64% gain.

The upcoming earnings release of Dow Inc. will be of great interest to investors. The company's earnings report is expected on October 24, 2024. In this report, analysts expect Dow Inc. to report earnings of $0.69 per share. This would represent year-over-year growth of 43.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.02 billion, up 2.66% from the year-ago period.

For the full fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.63 per share and revenue of $43.23 billion, representing changes of +17.41% and -3.12%, respectively, from the prior year.

It is also important to note recent changes in analyst estimates for Dow Inc. Recent revisions typically reflect the latest near-term business trends, so positive changes in estimates suggest that analysts are optimistic about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we have developed the Zacks Rank, an exclusive model that takes these estimate changes into account and provides an operating rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has a remarkable track record backed by third-party audits. Stocks ranked #1 have delivered an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.68% lower. Currently, Dow Inc. has a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Dow Inc. is currently trading at a P/E ratio of 19.72. This represents a premium to the industry's P/E ratio of 17.6.

It is also worth noting that DOW currently has a PEG ratio of 0.93. The PEG ratio is similar to the commonly used P/E ratio, but this value also takes into account the company's expected earnings growth rate. The average PEG ratio for the Chemicals – Diversified industry was 1.11 at yesterday's close.

The Chemicals – Diversified industry is part of the Basic Materials sector. The current Zacks Industry Rank of 225 puts this industry in the bottom 12% of all 250+ industries.

The story continues

The Zacks Industry Rank evaluates the strength of our individual industry groups by calculating the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all of these and other stock-influencing metrics during the upcoming trading sessions.

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