Stocks Rallying on Investment Valuation: The Dow Chemical Company (NYSE:DOW)

The Dow Chemical Company (NYSE:DOW) share price swings at $64.11 with percentage change of 0.42% in most recent trading session.

Pool Consensus

Finally, analysts shed their light over the DOW price targets; maintaining price high target of 79 while at average the price target was 68.75 in contrast with the current price of 64.11. The price targets are usually acts as the boosters or blasters in the performance of stock. A higher price target would definitely provide confidence to investors during the trading action, consideration given by Wall Street Journal.

So does the rankings given by analysts; let us highlight rankings table and we had 13 analysts recommending BUY ratings for current month and for previous month 13 stands on similar situation; while 4 for the current month as compared to 5 analysts recommending for HOLD from the pool for previous month. While 2 stands at overweight and 1 analyst gave Underweight. For the overall, consensus ratings were for Overweight.

Profitability Valuation

The profit margin can answer significantly to find consistent trends in a firm’s earnings, The Dow Chemical Company (NYSE:DOW) has positive 8.20% profit margin that indicates every dollar of sales a firm actually keeps in earnings, and the larger number indicates improving and vise worse. The firm has gross profit margin of 21.80% and operating profit margin calculated as 10.70%. Moving toward returns ratio, DOW has returns on investment of 10.90% which indicates firm’s investment efficiency or to compare the efficiency of a number of different investments.

While returns on assets calculated as 5.10% that gives an idea about how efficient management is at using its assets to generate earnings. The Dow Chemical Company (NYSE:DOW) has returns on equity of 16.20%, which is measuring a corporation’s profitability by revealing how much profit generates by DOW with the shareholders’ money. The firm attains analyst recommendation of 1.90 on scale of 1-5 with week’s performance of 0.94%.

Effective Investment Valuation

To persist focus on investment valuation, The Dow Chemical Company (NYSE:DOW) also have significant role in eyes of active investors, it has price to earnings growth of 2.80, which is a valuation metric for determining relative trade-off among price of a stock.

DOW has price to earnings growth ratio of 2.80, it is adding factors in a stock’s estimated earnings growth into its current valuation that showed 19.52 by price to earning ration. Furthermore, it has price to sale ratio of 1.61 that signifies the value placed on each dollar of a firm’s sales or incomes. The firm’s price to book was 2.05, which can be compared with current price to get idea about under or overvalue of stock. Forward Price to Earnings ratio of DOW attains value of 14.72 that is projecting or estimating EPS for the next 12-months and its follow by traders who believe on anticipates of a firm’s future rather than past performance.

To have technical views, liquidity ratio of The Dow Chemical Company (NYSE:DOW) calculated as 1.90 to match up with its debt to equity ratio of 0.82. The float short ration was 1.49%; as compared to Short Ratio were 2.99. The firm has institutional ownership of 68.80%, while insider ownership included 0.20%.

 

About Blake Escott

Blake Escott holds junior writer position in SWR. Before joining Streetwise Report, he was a freelance content Writer. He has high-level copywriting experience and particularly experienced in proofreading and editing. He covers news about different companies including all US market sectors. Interests: Commodities, Energy stocks, Sector-wise Stocks analysis, Utilities

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