Dow Chemical (DOW) Trading With Heavy Volume Before Market Open

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 a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Dow Chemical as such a stock due to the following factors:

  • DOW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $438.0 million.
  • DOW traded 1.5 million shares today in the pre-market hours as of 9:01 AM, representing 15.5% of its average daily volume.

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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%. DOW has a PE ratio of 19.0. Currently there are 3 analysts that rate Dow Chemical a buy, 3 analysts rate it a sell, and 10 rate it a hold.

The average volume for Dow Chemical has been 8.1 million shares per day over the past 30 days. Dow Chemical has a market cap of $52.2 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.76 and a short float of 2.4% with 3.02 days to cover. Shares are down 3% year-to-date as of the close of trading on Thursday.

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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, reasonable 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 exceeded that of the S&P 500 and the Chemicals industry average. The net income increased by 16.7% when compared to the same quarter one year prior, going from $582.00 million to $679.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 5.9%. Since the same quarter one year prior, revenues slightly increased by 0.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Compared to where it was 12 months ago, this stock has enjoyed a nice rise of 28.01% which was in line with the performance of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • Net operating cash flow has increased to $1,402.00 million or 27.10% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -10.79%.

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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