Strength Seen in Dow Inc. (DOW): Can Its 5.1% Jump Turn into More Strength?
Dow Inc. (DOW) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might help the stoc...
Dow Inc. (DOW) shares rallied 5.1% in the last trading session to close at $59.69. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 13.1% loss over the past four weeks.
Optimism over strengthening demand across a number of major markets including automotive, consumer durable, electronics and construction amid the ongoing economic recovery is driving the stock higher. The company is also benefiting from cost synergy savings, productivity actions and investment in high-return growth projects.
This materials science is expected to post quarterly earnings of $2.55 per share in its upcoming report, which represents a year-over-year change of +410%. Revenues are expected to be $14.24 billion, up 46.6% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Dow Inc., the consensus EPS estimate for the quarter has been revised 1.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on DOW going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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