Dow Inc. (DOW), headquartered in Midland, Michigan, is a prominent leader in the materials science sector. With a market cap of $37.24 billion, Dow Inc. is pivotal in the global chemical industry, delivering a wide array of products, including plastics, industrial intermediates, coatings, and silicones. Competing with other major chemical firms like DuPont de Nemours, Inc. (DD), Dow Inc. continues to enhance its market presence through a customer-centric strategy and a steadfast dedication to innovation and excellence in material production.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Dow fits this criterion perfectly, signifying its substantial size, stability, and influence in the materials science industry. As a leading chemical production and distribution player, Dow's extensive market presence and industry expertise make it a trusted partner for manufacturers and industries seeking high-quality and reliable material solutions.
Shares of DOW have dropped 12.4% from their 52-week high of $60.69, which they reached on Apr. 4. Over the past three months, DOW's shares have declined 8.2%, underperforming iShares U.S. Basic Materials ETF (IYM), which fell 4.5% during the same period.
In the long term, DOW is down 3.1% YTD. However, the shares have gained marginally over the past 52 weeks. In comparison, IYM has gained 2.1% in 2024 and 8.4% over the past year.
To confirm the recent bearish price trend, DOW has been trading below its 50-day moving average since late May and 200-day moving average since late June.
DOW shares declined marginally following the release of its Q1 earnings results on Apr. 25. The company announced an EPS of $0.56, which exceeded Wall Street's forecasts of $0.47 by 19.2%.
Highlighting the contrast in performance, rival DD has outperformed both DOW and IYB, with a 4.2% gain on a YTD basis.
Despite its recent underperformance compared to IYB, analysts are moderately optimistic about DOW's prospects. The stock has a consensus rating of "Moderate Buy" from 18 analysts in coverage. The mean price target of $60.46 reflects a 13.2% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
