Dow Chemical

(

DOW

) pushed the Conglomerates sector higher today making it today's featured conglomerates winner. The sector as a whole closed the day up 0.1%. By the end of trading, Dow Chemical rose 68 cents (2.2%) to $31.98 on light volume. Throughout the day, 6.8 million shares of Dow Chemical exchanged hands as compared to its average daily volume of 9.4 million shares. The stock ranged in a price between $31.61-$32.05 after having opened the day at $31.80 as compared to the previous trading day's close of $31.30. Other companies within the Conglomerates sector that increased today were:

Caterpillar

(

CAT

), up 2.9%,

United Technologies

(

UTX

), up 2.8%, and

New Mountain Finance

(

NMFC

), up 2.4%.

The Dow Chemical Company manufactures and supplies chemical products used as raw materials in the manufacture of customer products and services worldwide. Dow Chemical has a market cap of $37.42 billion and is part of the

conglomerates

industry. The company has a P/E ratio of 16.8, equal to the average conglomerates industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 8.8% year to date as of the close of trading on Friday. Currently there are six analysts that rate Dow Chemical a buy, two analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Dow Chemical as a

buy

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the conglomerates sector could consider

SPDR Trust Series one

(

SPY

) while those bearish on the conglomerates sector could consider

ProShares Short S&P 500

(

SH

).

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