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Dow Inc. (DOW) Gains But Lags Market: What You Should Know

Dow Inc. (DOW) closed the most recent trading day at $54.20, moving +1.29% from the previous trading session.

This story originally appeared on Zacks

Dow Inc. (DOW) closed the most recent trading day at $54.20, moving +1.29% from the previous trading session. This move lagged the S&P 500's daily gain of 1.78%. Meanwhile, the Dow gained 1.61%, and the Nasdaq, a tech-heavy index, added 0.95%.

- Zacks

Coming into today, shares of the materials science had lost 8.98% in the past month. In that same time, the Basic Materials sector lost 2.07%, while the S&P 500 lost 2.63%.

Wall Street will be looking for positivity from Dow Inc. as it approaches its next earnings report date. This is expected to be January 27, 2022. The company is expected to report EPS of $2.16, up 166.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.32 billion, up 33.74% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9 per share and revenue of $54.91 billion. These totals would mark changes of +442.17% and +42.47%, respectively, from last year.

Any recent changes to analyst estimates for Dow Inc. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 0.94% lower within the past month. Dow Inc. is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Dow Inc. currently has a Forward P/E ratio of 5.95. For comparison, its industry has an average Forward P/E of 12.91, which means Dow Inc. is trading at a discount to the group.

Meanwhile, DOW's PEG ratio is currently 0.2. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Chemical - Diversified stocks are, on average, holding a PEG ratio of 1.11 based on yesterday's closing prices.

The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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

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