Dow (DOW, $42.40) posts narrower-than-expected Q2 loss
Dow reported a narrower-than-expected loss for the second quarter. The company is retrenching its workforce by 6%.
The chemical company’s net loss of 31 cents a share came in narrower than the loss of 41 cents a share expected by analysts’ polled by FactSet.
Revenue of $8.35 billion, was below the year-ago quarter’s $11.01 billion ; but was slightly above analysts’ forecasts of $8 billion.
Dow said it will up the ante on its 2020 operating expense reduction target to $500 million from $350 million, including targeting $300 million in cost reductions, in part through a 6% jobs cut as well as exiting uncompetitive assets.
According to Tickeron, DOW's in Uptrend: Moving Average Convergence Divergence (MACD) Histogram just turned positive
This is a Bullish indicator signaling DOW's price could rise. Traders may explore going long on the ticker or buying call options. In 6 of 9 cases where DOW's MACD histogram became positive, the price rose further within the following month. The odds of a continued Uptrend are 67%.
Current price $42.40 crossed the resistance line at $42.79 and is trading between $42.79 resistance and $41.67 support lines. Throughout the month of 06/19/20 - 07/22/20, the price experienced a +6% Uptrend. During the week of 07/15/20 - 07/22/20, the stock enjoyed a +2% Uptrend growth.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator exceeded the 0 level on July 21, 2020. Traders may consider buying the ticker or exploring call options. In 14 of 22 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 64%.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DOW advanced for three days, in 54 of 92 cases, the price rose further within the following month. The odds of a continued Uptrend are 59%.
Bearish Trend Analysis
The Stochastic Indicator demonstrated that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 7 of 7 cases where DOW's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 90%.
The Aroon Indicator entered a Downtrend today. In 46 of 60 cases where DOW Aroon's Indicator entered a Downtrend, the price fell further within the following month. The odds of a continued Downtrend are 77%.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 61%. During the last month, the daily ratio of advancing to declining volumes was 1.02 to 1.
The Tickeron Valuation Rating of 12 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.54) is normal, around the industry mean (2.43). DOW has a moderately low P/E Ratio (0.00) as compared to the industry average of (22.84). Projected Growth (PEG Ratio) (0.00) is also within normal values, averaging (1.12). DOW has a moderately high Dividend Yield (3.84) as compared to the industry average of (1.49). P/S Ratio (0.52) is also within normal values, averaging (2.10).
The Tickeron Price Growth Rating for this company is 45 (best 1 - 100 worst), indicating steady price growth. DOW’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 91 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 100 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DOW’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock worse than average.
DOW's Indicator enters downward trend
The Aroon Indicator for DOW entered a downward trend on December 02, 2024. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 153 similar instances where the Aroon Indicator formed such a pattern. In of the 153 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DOW declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where DOW's RSI Oscillator exited the oversold zone, of 27 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 57 cases where DOW's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on November 29, 2024. You may want to consider a long position or call options on DOW as a result. In of 92 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for DOW just turned positive on November 22, 2024. Looking at past instances where DOW's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DOW advanced for three days, in of 315 cases, the price rose further within the following month. The odds of a continued upward trend are .
DOW may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.217) is normal, around the industry mean (3.606). P/E Ratio (71.049) is within average values for comparable stocks, (34.106). Projected Growth (PEG Ratio) (0.788) is also within normal values, averaging (6.088). Dividend Yield (0.048) settles around the average of (0.038) among similar stocks. P/S Ratio (0.926) is also within normal values, averaging (92.311).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. DOW’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DOW’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock worse than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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a developer of chemicals and specialty materials
Industry ChemicalsSpecialty