Dow Chemical Co (NYSE:DOW): Can it Maintain the Trend?

[Investopedia] Dow Chemical Co (NYSE:DOW)(TREND ANALYSISIt’s not yet time to press the sell button on shares of The Dow Chemical Company (DOW), according to analysts at UBS.

Even though DOW stock has more than doubled the performance of the S&P 500 (SPX) index over the past 12 months, rising almost 14%, making it one of the better-performing equities in its sector during that span, there’s more upside to the shares.

The merger is likely to generate $3 billion in cost savings and should boost Dow’s cash flow, UBS noted. The analysts added Dow stock was “now too cheap to ignore.” The shares closed Monday at $53.54, up 1.04%. Based on UBS’ price target of $62, the analysts believe the Midland, Michigan-based company can return additional premiums of around 16%.

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Dow Chemical Co (NYSE:DOW) stock is currently trading 6.51% below its 52-week-high, 32.59% above its 52-week-low. The 1-year stock price history is in the range of $40.26 – $57.1. Dow Chemical Co (DOW) has a price to earnings ratio of 7.8 versus Basic Materials sector average of 17.05. DOW stock price has outperformed the S&P 500 by 0.4%. The Diversified Chemicals company is currently valued at $60.15 billion, and its share price closed the last trading session at $53.38. The stock has a 50-day moving average of $53.02 and a 200-day moving average of $52.33.

Dow Chemical Co (DOW) current short interest stands at 34.27 million shares. It has increased by 53% from the same period of last month. Around 4% of the company’s shares, which are float, are short sold. With a 10-days average volume of 5.46 million shares, the number of days required to cover the short positions stand at 6.3 days.

DOW is forecasted to report earnings per share of $0.79 and a revenue of $12.08 billion for the 3rd Quarter of the fiscal year 2016. Dow Chemical Co (DOW) expects to post results on October 27. The Diversified Chemicals company announced last quarter earnings per share of $0.95 against a consensus Street estimate of $0.85, beating the average estimate by $0.1. The company posted a revenue of $11.95 billion compared to an estimation of $11.27 billion.

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There are currently twenty-one analysts that cover Dow Chemical Co stock. Of those twenty-one, fifteen have a Buy rating, five have a Hold rating and one has a Sell rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $60.41.

A recent analyst activity consisted of UBS upgrading their Neutral rating to Buy on October 10. UBS set their price target at $62. This corresponds to a 16.15% upside from the last closing price. On the date of report, the stock closed at $53.54.

Citi upgraded their Neutral rating to Buy on October 3. On the date of report, the stock closed at $52.42.

Another research firm was JPMorgan who upgraded their Neutral rating to Overweight on July 29. JPMorgan fixed their price target at $60. This translates to a 12.4% upside from the last closing price. On the date of report, the stock closed at $53.2.

Company snapshot

The Dow Chemical Company is a diversified chemical company that provides chemical, plastic, and agricultural products and services to various essential consumer markets. The Company serves customers in countries around the world in markets such as food, transportation, health and medicine, personal care, and construction.

Dow Chemical Co (NYSE:DOW): Can it Maintain the Trend? was last modified: October 17th, 2016 by Steven Finley