Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
Dow Chemical (
DOW) pushed the Conglomerates sector lower today making it today's featured Conglomerates laggard. The sector as a whole closed the day up 0.1%. By the end of trading, Dow Chemical fell 33 cents (-1%) to $32.20 on average volume. Throughout the day, 6.3 million shares of Dow Chemical exchanged hands as compared to its average daily volume of 7.9 million shares. The stock ranged in price between $31.77-$32.69 after having opened the day at $32.40 as compared to the previous trading day's close of $32.53. Other companies within the Conglomerates sector that declined today were:
MGT Capital Investments (
MGT), down 2.4% and
Caterpillar (
CAT), down 1.6%.
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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 $38.75 billion and is part of the chemicals industry. The company has a P/E ratio of 17, below the S&P 500 P/E ratio of 17.7. Shares are down 0.1% year to date as of the close of trading on Wednesday. Currently there are two analysts that rate Dow Chemical a buy, four analysts rate it a sell, and 13 rate it a hold.
TheStreet Ratings rates Dow Chemical as a
buy. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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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