Dow Inc. (DOW, $50.74) Q2 earnings beat estimates, but decline year-over-year
Dow Inc.’s second quarter adjusted earnings, though beat analysts’ estimates, fell sharply from the year-ago period.
The chemical and industrial products maker's net income declined to $75 million (or 10 cents a share), from $1.33 billion, (or $1.78 a share) in the year-ago period. Excluding non-recurring items, earnings fell to 86 cents from $1.41, but was able to surpass the 84 cents expected by the Street consensus.
Dow’s net sales fell to $11.01 from $12.85 billion a year ago. It missed FactSet consensus of $11.29 billion.
The company lowered its spending outlook by -25% to $2 billion in 2019, and said that it would delay a 450,000-ton polyolefins plant expansion in Europe and a feasibility study for a new siloxanes plant.
Dow Inc. has projected third-quarter revenue of $10.50 billion to $11 billion, a range lower than estimates of $12.03 billion.
"Macro environment is cautious, largely driven by geopolitical volatility and prolonged trade negotiations," Chief Executive Officer Jim Fitterling said on a post-earnings call.
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's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for DOW turned positive on July 08, 2026. 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 .
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 91 past instances where the momentum indicator moved above 0, the stock continued to climb. 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 290 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 has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
DOW moved below its 50-day moving average on August 12, 2026 date and that indicates a change from an upward trend to a 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 .
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 (1.392) is normal, around the industry mean (9.176). DOW has a moderately high P/E Ratio (75.925) as compared to the industry average of (30.298). Projected Growth (PEG Ratio) (38.891) is also within normal values, averaging (20.317). Dividend Yield (0.046) settles around the average of (0.037) among similar stocks. P/S Ratio (0.532) is also within normal values, averaging (1.443).
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 88, 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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