DOW Trading Cheaper Than Industry: Should You Buy the Stock? – January 20, 2025

From Zacks Investment Research: 2025-01-20 16:40:08

Dow Inc. stock is trading at a 32% discount to its 52-week high of $60.69, with technical indicators showing it trading below the 200-day SMA since October 7. Challenges include soft demand abroad due to lower consumer spending and inflationary pressures. DOW shares are currently undervalued compared to the industry average. Despite this, the stock has underperformed, falling 23.4% in the past year. Demand weakness in Europe and China, along with pricing headwinds, are impacting Dow. However, the company is focused on high-return growth projects and cost actions to drive value creation for shareholders. Investors should approach the stock cautiously due to weakening earnings estimates and market conditions.



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