Dow Chemical Co (DOW): Today's Featured Conglomerates Winner

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 higher today making it today's featured conglomerates winner. The sector as a whole closed the day up 0.4%. By the end of trading, Dow Chemical rose $0.37 (1.2%) to $30.55 on average volume. Throughout the day, 7,192,549 shares of Dow Chemical exchanged hands as compared to its average daily volume of 7,964,500 shares. The stock ranged in a price between $30.35-$30.69 after having opened the day at $30.40 as compared to the previous trading day's close of $30.18. Other companies within the Conglomerates sector that increased today were: Lydall ( LDL), up 3.0%, Tredegar Corporation ( TG), up 2.6%, SCG Financial Acquistion ( SCGQ), up 2.3% and SCG Financial Acquistion ( RMGN), up 2.3%.
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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 $36.6 billion and is part of the chemicals industry. The company has a P/E ratio of 43.3, above the S&P 500 P/E ratio of 17.7. Shares are down 6.6% year to date as of the close of trading on Thursday.

TheStreet Ratings rates Dow Chemical as a buy. The company's strongest point has been its a solid financial position based on a variety of debt and liquidity measures that we have looked at. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, MGT Capital Investments ( MGT), down 7.2% and Steel Partner Holdings ( SPLP), down 2.0%.

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 1 ( SPY) while those bearish on the conglomerates sector could consider ProShares Short S&P 500 ( SH).

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