The most recent trading session ended with Dow Inc. (DOW) standing at $36.23, reflecting a +1.34% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.91%. Elsewhere, the Dow saw a downswing of 1.5%, while the tech-heavy Nasdaq depreciated by 1.96%.

Coming into today, shares of the materials science had lost 6.56% in the past month. In that same time, the Basic Materials sector lost 3.32%, while the S&P 500 lost 7.38%.

Market participants will be closely following the financial results of Dow Inc. in its upcoming release. On that day, Dow Inc. is projected to report earnings of $0.10 per share, which would represent a year-over-year decline of 82.14%. Meanwhile, our latest consensus estimate is calling for revenue of $10.29 billion, down 4.44% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.93 per share and revenue of $42.49 billion, indicating changes of +12.87% and -1.11%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Dow Inc. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 14.63% fall in the Zacks Consensus EPS estimate. As of now, Dow Inc. holds a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Dow Inc. is currently trading at a Forward P/E ratio of 18.49. This indicates a premium in contrast to its industry's Forward P/E of 15.5.

One should further note that DOW currently holds a PEG ratio of 0.98. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Chemical - Diversified was holding an average PEG ratio of 0.98 at yesterday's closing price.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 220, which puts it in the bottom 13% 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.

To follow DOW in the coming trading sessions, be sure to utilize Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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