Today's Unusual Social Activity Stock: Dow Chemical (DOW)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Dow Chemical ( DOW) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Dow Chemical as such a stock due to the following factors:

  • DOW has 16x the normal benchmarked social activity for this time of the day compared to its average of 4.81 mentions/day.
  • DOW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $256.0 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on DOW:

The Dow Chemical Company manufactures and supplies chemical products for use as raw materials worldwide. The stock currently has a dividend yield of 3.3%. DOW has a PE ratio of 18.1. Currently there are 3 analysts that rate Dow Chemical a buy, 4 analysts rate it a sell, and 10 rate it a hold.

The average volume for Dow Chemical has been 7.2 million shares per day over the past 30 days. Dow Chemical has a market cap of $47.3 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.84 and a short float of 2% with 3.15 days to cover. Shares are up 21% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Dow Chemical as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, solid stock price performance, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 230.4% when compared to the same quarter one year prior, rising from $734.00 million to $2,425.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 2.6%. Since the same quarter one year prior, revenues slightly increased by 0.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 240.00% and other important driving factors, this stock has surged by 36.87% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DOW should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Net operating cash flow has significantly increased by 154.14% to $3,741.00 million when compared to the same quarter last year. In addition, DOW CHEMICAL has also vastly surpassed the industry average cash flow growth rate of -11.07%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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