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.
The Aroon Indicator for DOW entered a downward trend on December 10, 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 159 similar instances where the Aroon Indicator formed such a pattern. In of the 159 cases the stock moved lower. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on December 04, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on DOW as a result. In of 93 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent 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 .
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 shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
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 (3.612). P/E Ratio (71.049) is within average values for comparable stocks, (34.004). 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 (92.747).
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.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of chemicals and specialty materials
Industry ChemicalsSpecialty