Dow (DOW, $59.98) and LyondellBasell (LYB, $96.04) shares downgraded by Bank of America analyst
Shares of Dow Inc. and LyondellBasell fell after Bank of America analyst Steve Byrne downgraded rating on the chemicals companies.
Byrne cut his rating on Dow Inc. shares to underperform from neutral, while lowering his price target to $68 from $71. He downgraded LyondellBasell stock to neutral from buy and reduced his price target to $114 from $117.
The lowered outlook was largely due to the possibility of commodity price inflation peaking. The analyst is concerned that the risk could hurt a number of chemical chains as China slows, production recovers, and spending shifts from goods to services. “This is particularly true for U.S. polyethylene markets, as inventory balances approach healthier levels and domestic demand is being met. While U.S. polyethylene prices could move higher from here, we see the strength as increasingly at risk, with substantial downside possible,” Byrne noted.
DOW sees its Stochastic Oscillator ascending out of oversold territory
On July 02, 2025, the Stochastic Oscillator for DOW moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 55 instances where the indicator left the oversold zone. In of the 55 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for DOW just turned positive on July 03, 2025. 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 302 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on June 23, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on DOW as a result. In of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
DOW moved below its 50-day moving average on July 03, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for DOW crossed bearishly below the 50-day moving average on June 26, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 .
DOW broke above its upper Bollinger Band on June 09, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for DOW entered a downward trend on June 12, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put 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 (3.653). P/E Ratio (71.049) is within average values for comparable stocks, (34.612). Projected Growth (PEG Ratio) (0.788) is also within normal values, averaging (6.312). Dividend Yield (0.048) settles around the average of (0.037) among similar stocks. P/S Ratio (0.926) is also within normal values, averaging (97.810).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 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 82, placing this stock worse than average.
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General Information
a developer of chemicals and specialty materials
Industry ChemicalsSpecialty
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