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.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
DOW in upward trend: 10-day moving average broke above 50-day moving average on August 17, 2026
The 10-day moving average for DOW crossed bullishly above the 50-day moving average on August 17, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on August 10, 2026. You may want to consider a long position or call options on DOW as a result. In of 90 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
DOW moved above its 50-day moving average on August 14, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DOW advanced for three days, in of 292 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 195 cases where DOW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 8 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 50-day moving average for DOW moved below the 200-day moving average on August 14, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
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 August 20, 2026. 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.
Fundamental Analysis (Ratings)
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 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued 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 (1.473) is normal, around the industry mean (9.778). DOW has a moderately high P/E Ratio (75.925) as compared to the industry average of (33.814). Projected Growth (PEG Ratio) (38.891) is also within normal values, averaging (20.317). Dividend Yield (0.043) settles around the average of (0.037) among similar stocks. P/S Ratio (0.563) is also within normal values, averaging (1.454).
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 86, placing this stock worse than average.
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General Information
a developer of chemicals and specialty materials
Industry ChemicalsMajorDiversified
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