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

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.

Dow Chemical ( DOW) pushed the Chemicals industry higher today making it today's featured chemicals winner. The industry as a whole closed the day down 0.3%. By the end of trading, Dow Chemical rose $1.53 (3.9%) to $40.80 on heavy volume. Throughout the day, 13,826,527 shares of Dow Chemical exchanged hands as compared to its average daily volume of 8,014,600 shares. The stock ranged in a price between $39.27-$40.81 after having opened the day at $39.29 as compared to the previous trading day's close of $39.27. Other companies within the Chemicals industry that increased today were: REX American Resources ( REX), up 8.1%, Arabian American Development Company ( ARSD), up 6.1%, American Pacific Corporation ( APFC), up 3.9% and PolyOne Corporation ( POL), up 2.8%.

The Dow Chemical Company manufactures and supplies chemical products for use as raw materials worldwide. Dow Chemical has a market cap of $46.8 billion and is part of the basic materials sector. The company has a P/E ratio of 17.0, below the S&P 500 P/E ratio of 17.7. Shares are up 21.5% year to date as of the close of trading on Friday. Currently there are 3 analysts that rate Dow Chemical a buy, 3 analysts rate it a sell, and 10 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 solid stock price performance, revenue growth, reasonable valuation levels, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Oil-Dri Corporation of America ( ODC), down 13.8%, Metabolix ( MBLX), down 11.0%, Pacific Ethanol ( PEIX), down 5.5% and Gulf Resources ( GURE), down 5.0% , were all laggards within the chemicals industry with Eastman Chemical Company ( EMN) being today's chemicals industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the chemicals industry could consider Materials Select Sector SPDR ( XLB) while those bearish on the chemicals industry could consider ProShares Short Basic Materials Fd ( SBM).

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