Are Dow Inc. (NYSE:DOW) Prospects Worsening?

Dow Inc. (NYSE:DOW) stock’s Relative Strength Index (RSI) is 58.89, with weekly volatility at 2.19% and ATR at 1.47. The DOW stock’s 52-week price range has touched low of $21.95 and a $58.18 high. Its shares traded higher over the last trading session, gaining 3.40% on 12/18/20. The shares fell to a low of $54.24 before closing at $55.66. Intraday shares traded counted 11.46 million, which was -178.76% lower than its 30-day average trading volume of 4.11M. DOW’s previous close was $53.83 while the outstanding shares total 741.75M.

Investors have identified the Chemicals company Dow Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $39.93 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Dow Inc. (DOW) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For DOW, the company has in raw cash 4.55 billion on their books with 347.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 17.79 billion total, with 10.21 billion as their total liabilities.

DOW were able to record 3.64 billion as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 2.17 billion. In cash movements, the company had a total of 4.6 billion as operating cash flow.

Potential earnings growth for Dow Inc. (DOW)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, Dow Inc. recorded a total of 9.71 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -10.83% coming in sequential stages and their sales for the Q3 2020 quarter increasing by 13.98%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 8.37 billion trying to sell their products during the last quarter, with the result yielding a gross income of 1.34 billion. This allows shareholders to hold on to 741.75M with the recently reported earning now reading -0.04 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (0.50 cents a share).

Having a look at the company’s valuation, the company is expected to record 2.68 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on DOW sounds very interesting.

Is the stock of DOW attractive?

In related news, Senior Vice President, HOLICKI PETER sold 6,836 shares of the company’s stock in a transaction that recorded on Nov 18. The sale was performed at an average price of 55.99, for a total value of 382,761. As the sale deal closes, the Chief Executive Officer, Fitterling James R now bought 20,000 shares of the company’s stock, valued at 492,166. Also, Director, BUSH WESLEY G bought 20,450 shares of the company’s stock in a deal that was recorded on Mar 12. The shares were price at an average price of 24.61 per share, with a total market value of 503,285. Following this completion of acquisition, the Director, FETTIG JEFF M now holds 8,100 shares of the company’s stock, valued at 199,446. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.

6 out of 24 analysts covering the stock have rated it a Buy, while 15 have maintained a Hold recommendation on Dow Inc.. 2 analysts has assigned a Sell rating on the DOW stock. The 12-month mean consensus price target for the company’s shares has been set at $51.83.

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