Dow Inc. (DOW), with a market cap of $25.9 billion, provides various materials science solutions for packaging, infrastructure, mobility, and consumer applications in the United States and globally. Headquartered in Midland, Michigan, the company operates through Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings segments.
Companies valued at more than $10 billion or more are generally considered “large-cap stocks”, and DOW fits this criterion perfectly. As a leading figure in the basic materials sector, the company benefits from a world-class portfolio of advanced, sustainable and leading-edge products, significant low-cost global feedstock positions, global footprint and a large market reach.
Despite its strengths, DOW has fallen 41.1% from its 52-week high of $60.69, recorded on Apr. 4, last year. Shares of DOW have declined 13.4% over the past three months, falling behind the broader Dow Jones Industrial Average’s ($DOWI) 5.8% fall during the same time frame.
Over the past six months, DOW shares declined 28.9%, underperforming DOWI’s marginal gain. Moreover, shares of DOW have fallen 38% over the past 52 weeks, compared to DOWI’s 6% rally in the same time frame.
Enforcing a bearish trend, DOW has been trading below its 200-day and 50-day moving average since October.
DOW stock declined 6.1% after reporting disappointing Q4 earnings on Jan. 30. The company reported a 2% decline in its net sales, which amounted to $10.4 billion. Moreover, its EPS fell short of Wall Street estimates by 100%, which is disappointing.
DOW’s rival, Valhi, Inc. (VHI), is in the same boat, with its shares declining 35.2% over the past six months and 10.1% over the past 52 weeks.
However, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 19 analysts in coverage. Its mean price target of $46 represents an upside of 28.7% from the current market prices.
On the date of publication, Kritika Sarmah 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.
