|Bid||0.00 x 800|
|Ask||0.00 x 3100|
|Day's Range||30.16 - 30.68|
|52 Week Range||30.16 - 102.34|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||7.20|
|Earnings Date||May 2, 2019 - May 2, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||43.38|
It hasn't been a smooth ride for Dow (NYSE:DOW) on its recent spinoff. The hope was the entity would be a low-valuation, high-yield stock that appealed to investors for obvious reasons. Unfortunately, Dow stock is a low valuation, high yield stock. But it's not appealing to investors at the moment.Source: Shutterstock For those who are unaware, Dow Inc stock began trading on its own in March. It was the Materials Science spinoff from DowDupont. For every three shares of the old stock that investors owned, they received one share of Dow stock.To no one's surprise, the markets initially hit the equity with a wave of selling. That came as the market tried to figure out its standalone worth and as analysts tried to put together their projections. It's also after investors were deciding whether they wanted to own Dow and fellow spinoff DuPont (NYSE:DD), or simply keep DD stock and sell their newly acquired shares of Dow.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 8 Dividend Aristocrats That Also Offer Stock Price Growth Where Dow Inc stock found support was important though, as it set the tone for multi-month support in the name. However, that sustainability gave way earlier this month, as the SPDR S&P 500 ETF (NYSEARCA:SPY) sold off too.Now what? Valuing Dow StockAnalysts expect sales of approximately $44 billion this year and for that figure to grow 4.1% in 2020 to around $46 billion. However, it's not clear if those top-line estimates are too high. Last quarter, sales of $11.01 billion missed consensus estimates by almost $260 million and fell 14% year-over-year. Management also slashed its full-year capex budget from $2.5 billion to $2 billion.From CEO Jim Fitterling: "We still see global growth, but the pace of that expansion has slowed, as buying patterns remain cautious due to ongoing trade and geopolitical uncertainties."The business environment seems mild, at best. If the company can't find any momentum in its business over the next six to 12 months, Dow stock may struggle to find any too.Estimates call for earnings of $3.48 per share this year and $4.43 per share next year. At current prices, that leaves Dow stock trading at about 13.5 times this year's earnings. Certainly not expensive, but it's not necessarily cheap enough to "back up the truck." If the estimates for next year are accurate, then around 10-times forward earnings is more enticing. Dow DividendThe dividend yield is now near 6.25%, which is enticing to most investors. But is it worth it?When we were pounding the table for AT&T (NYSE:T) in late 2018 and the first half of 2019, it too was down and out. To an extent, it also lacks momentum and was paying more than a 6% yield. But it has raised its dividend for 35 straight years, has enormous free cash flow that easily covers the dividend and has a business that is mostly recurring revenue.Last quarter, Dow's free cash flow did not cover the dividend. It spent $500 million on dividends and $300 million on share repurchases. I'm not saying that it makes Dow Inc stock a no touch. But it doesn't make it a no-brainer buy that AT&T and some others have been in the past. It helped that AT&T traded at about 9 times current earnings too, not around 13.5 times like Dow.On fundamentals alone, I'd like to see another quarter from Dow before feeling confident enough in its business. But what about its technicals? Trading Dow Inc StockIn late March, Dow stock found $47.50 as support, while $53 was resistance. Despite bursting through resistance in April, the stock has spent most of its time since May between this range. Click to EnlargeAfter disappointing earnings results and several analyst downgrades, Dow stock was again clinging to range support. However, this time, $47.50 gave way and ushered in a wave of selling. Granted, the overall market was under pressure too, but it was not a good sign.Dow found support on the back side of a prior trendline and is now in the process of rallying. The big question now looms for technical traders: will prior support become resistance?If it does and Dow stock can't reclaim $47.50, then the $44 lows are still on the table. If it can reclaim $47.50, then the 20-day and 50-day moving averages are the first upside targets. Interested bulls may want to wait for a lower price or a better technical setup.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long T. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Dividend Aristocrat Stocks to Buy Now No Matter What * 7 Stocks to Buy to Ride the Vegan Wave * 4 Safe Stocks to Buy Amid Trade War Turbulence The post Is Dow Stock a Must-Buy for Its 6.25% Yield? appeared first on InvestorPlace.
Moody's Investors Service affirmed The Chemours Company's (Chemours) ratings, including the Ba2 CFR, the Baa3 rating on the secured bank facilities, and the Ba3 senior unsecured rating, but changed the outlook to negative from stable. The negative outlook reflects the heightened level of litigation risk stemming from the growing number of actions filed by states, environmental regulators, water municipalities and private plaintiffs.
Rating Action: Moody's assigns Ba1 ratings to Olin's proposed notes and credit facilities. Global Credit Research- 11 Jul 2019. New York, July 11, 2019-- Moody's Investors Service assigned Ba1 ratings ...
Insider Monkey tracks hedge funds, billionaires, and prominent value investors for a very simple reason: their consensus picks generally outperform the market. We aren’t the only research shop broadcasting this fact using a bullhorn. Here is what strategist Ben Snider said in Goldman Sachs’ periodic hedge fund report: “Despite the strong track record of popular […]
Warranty Marks Industry’s First Product and Labor Coverage for Use of Combined Wrap, Flashing and Rigid Foam Insulation for New Single Family Homes
Investors in the Dow Jones Industrial Average ETF might wonder what's next for the widely-watched benchmark. Analysts think it's 28,762 in 18 months.
Dow Inc (NYSE:DOW) is one of the companies formed as a result of the recent split of DowDuPont (NYSE:DWDP) into three separate companies. Since then it has been an interesting few months for Dow stock. Let's review:Source: Roy Luck via Flickr (modified)DowDuPont, one of the world's largest industrial chemical conglomerates, had originally been formed as a result of the merger of Dow Chemical and E.I. du Pont de Nemours that was announced in 2015 and completed in 2017.On April 2, DOW shares started trading on the New York Stock Exchange. The same day, it replaced DowDuPont in the Dow Jones Industrial Average as one of the 30 stocks in the index. It has also been added to the S&P 500.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Stocks Ready to Bounce on a Trade Deal On June 1, DowDuPont further spun Corteva (NYSE:CTVA), which later started trading on NYSE on June 3. The remaining DowDuPont also got listed under the name DuPont (NYSE:DD).Hence it has been a somewhat confusing several weeks for the past owners of DWDP stock. Although the separation of the three companies is now complete on paper, there are likely to be more questions as it all shakes out. Dow is expected to report Q2 earnings on July 25. A Closer look at DOW StockFollowing the three-way spin-off, Dow is now concentrating on its business as a commodities chemical producer. With over 100 manufacturing sites in 31 countries, DOW offers science-based products and solutions for a wide range of customers in packaging, infrastructure and consumer care. It has a market cap of $38 billion.Dow's Q1 earnings released on May 2 showed that net sales decreased 10% year-over-year (YoY) to $10.8 billion. In the quarterly statement, investors paid attention to the results from Dow's three main divisions: * Performance Materials & Coatings (net sales were $2.3 billion, down 2% YoY); * Industrial Intermediates & Infrastructure (net sales were $3.4 billion, down 8% YoY); and * Packaging & Specialty Plastics (net sales were $5.1 billion, down 15% YoY).Performance materials include paints, coatings and silicones; industrials include chemicals, solvents and lubricants; packaging includes food packaging products, specialty polymers and hydrocarbons.The company highlighted that both Industrial Intermediates & Infrastructure and Packaging & Specialty Plastics witnessed margin declines, contributing to the decrease in profits and earnings in the first three months of 2019.In the earnings call, management emphasized the group's commitment to cost savings, which stood at $125 million for the quarter.CEO Jim Fitterling said that following the separation from DowDuPont, Dow is now "well positioned to operate more productively, invest more prudently, grow more profitably and deliver higher returns to shareholders."The Board of Directors also declared a dividend of $0.70 per share to be paid on June 14 to stockholders of record as of May 31. The current dividend yield stands at a respectable 5.5%.The company finally said that it expects some seasonal headwinds, especially regarding increased seasonal maintenance costs. Understanding the DOW Stock Price NowFollowing its listing, Dow initially went up about 10% in three trading days. Yet since then, it has gone down from an intraday high of 60.52 on April 4 to an intraday low of $46.75 on May 31. It is currently hovering around $48.The selling pressure has increased especially after the Q1 earnings report of May 2.Thus over the past two months stock has suffered from a damaging technical picture. Its short-term technical chart still looks weak, and it is pointing to the possibility for more downside around the corner.Although DOW's momentum indicators, which describe the speed at which prices move over a given time period, are currently in oversold territory, they can stay oversold for quite a long time, especially when the overall trend is down.Therefore, more buy signals based on momentum indicators need to be conﬁrmed with further chart analysis before the stock is a buy from a technical standpoint.In short, at this point, bears are in control. Therefore Dow shares will need a catalyst to make them attractive in the eyes of long-term investors, who are possibly still skeptical about the near-term prospects for the company.If you still believe in the bull case for Dow stock, you might consider waiting for a better time to get long, such as around mid $40 levels. The Bottom Line on Dow StockGoing forward, investors would like to see concrete evidence in the results that considerable value can be achieved post-separation. Some questions that remain yet to be answered are the levels of operating margin as well as the free cash flow.Wall Street does not expect Dow to be a high growth company. However, analysts want to see that it will remain a stable cash cow with strong dividends and manageable debt levels.In the next earnings report, investors will also want to get a feel for any potential economic slowdown in the U.S. or globally as they could affect DOW stock's revenues. As a commodity-based business, the group is understandably is prone to earnings declines during economic downturns.Dow also relies on crude oil as a basic resource used in manufacturing. Therefore DOW stock is exposed to price fluctuations in crude, too. Thus management's guidance, especially regarding the global economy and commodity prices, may indeed become quite an important section of the quarterly report.In short, up until and around the Q2 earnings release, there is likely to be further volatility in the price of DOW stock with a downward bias.However, in the long run, the group's strong position in the industry, as well as the robust dividend yield, should support the price of Dow shares.If you are not yet a shareholder of DOW stock, you may want to wait on the sidelines until you have had a chance to analyze the results. If you already own Dow shares, you may consider hedging your position with at-the-money (ATM) covered calls with July 19 expiry.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities.Compare Brokers The post Dow Stock Is Just Too Bumpy to Consider Buying Right Now appeared first on InvestorPlace.
Hedge funds are known to underperform the bull markets but that's not because they are bad at investing. Truth be told, most hedge fund managers and other smaller players within this industry are very smart and skilled investors. Of course, they may also make wrong bets in some instances, but no one knows what the […]
Seven chemicals analysts from large Wall Street brokerages have relaunched coverage of DuPont in the past few days with most bullish on the stock following its split from DowDuPont.
is promoting its chief operating officer Mark Newman to a newly created position of chief operating officer, said the chemical company Tuesday. As the company's COO, Newman will be responsible for Chemours' Titanium Technologies, Fluoroproducts and Chemical Solutions businesses. Another Chemours' executive, Sameer Ralhan, vice president of business finance and treasurer, will take on the CFO job.
Shares of agricultural input company Corteva stumbled out of the gate on its first day as a new stand-alone company. But Corteva CEO Jim Collins said he isn’t worried.
Analysts at Morgan Stanley are bullish on the newly independent DuPont following its separation from DowDuPont, initiating coverage on the company with an overweight rating and $78 price target. DuPont is now an independent company after DowDuPont completed a three-way split that became official on June 1.
Many investors, including Paul Tudor Jones or Stan Druckenmiller, have been saying before the Q4 market crash that the stock market is overvalued due to a low interest rate environment that leads to companies swapping their equity for debt and focusing mostly on short-term performance such as beating the quarterly earnings estimates. In the first […]
"This too shall pass," DowDuPont CEO said of recent economic headwinds from dropping China sales and bad weather in Midwest
With the completion of the DowDuPont split at hand, there are more than a few things to know about one of the most complicated transactions in history.
Another state has filed a lawsuit against regional chemical manufacturers DowDuPont and Chemours over contamination caused by dangerous chemicals. New Hamphire's governor, attorney general and department of environmental services commissioner announced Wednesday they've filed two separate lawsuits against DowDuPont and its spinoff Chemours, along with other manufacturers of PFAS, a family of chemicals used to create products like firefighting foam and Teflon. The complaint comes about two weeks after New Jersey filed its own lawsuit in New Jersey Superior Court against the same group of manufacturers New Hampshire is targeting, which includes Tyco Fire Products LP, based in North Wales, as well as Chemguard Inc., Buckeye Fire Equipment Co., Kidde-Fenwal Inc. and National Foam Inc. The lawsuits allege that the companies produced the chemicals, which are linked to cancers and other serious health issues, knowing they could seep into natural resources and harm residents.
On Wednesday, however, DowDuPont announced it was taking a $800 million to $1.3 billion non-cash write-down, due to slow demand and a weak market for its biomaterials and U.S. bioethanol businesses. In the current second quarter period, the company will spin off Corteva, its agricultural business, set for June 1.
U.S. stock indexes opened firmly lower Wednesday morning as worries about trade tensions and the outlook for global growth sparked buying in assets perceived as havens like government paper, which resulted in the heightened warning signal from a closely watched fixed-income recession warning. The Dow Jones Industrial Average falls 200 points, or 0.8%, at 25,159, the S&P 500 index retreats 0.6% at 2,785, while the Nasdaq Composite Index falls 0.7% at 7,554. Chinese state-media reports underlined the country's scope to userare-earth minerals, used in the production of everyday devices, such as mobile phones, memory chips and rechargeable batteries, as an economic weapon. The spread between the 10-year Treasury note and the 3-month Treasury bill moved further into negative territory, dropping to its lowest since 2007. Such inversions of that measure of the yield curve are viewed as reliable recession indicator. In corporate news, shares of DowDuPont Inc. were in focus, after the materials and chemicals company said Wednesday that it expects to book noncash goodwill impairment charges of $800 million to $1.3 billion, following the 2017 merger of The Dow Chemical Company and E.I. du Pont de Nemours.
DuPont Performance Building Solutions rolls out a new, more robust offering that helps architects build more easily, no matter how and where they choose to build.
A drop in ethanol prices coupled with weak demand for its biomaterial products were major factors in the asset write-down, the company says.