Dow Chemical (DOW): Today's Pre-Market Leader Stock

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 leader 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 $283.3 million.
  • DOW traded 22,300 shares today in the pre-market hours as of 8:02 AM.
  • DOW is up 2.1% today from yesterday's close.

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More details on DOW:

The Dow Chemical Company manufactures and supplies chemical products for use as raw materials in the manufacture of customer products and services worldwide. The stock currently has a dividend yield of 2.9%. DOW has a PE ratio of 12.9. Currently there are 4 analysts that rate Dow Chemical a buy, 3 analysts rate it a sell, and 9 rate it a hold.

The average volume for Dow Chemical has been 7.4 million shares per day over the past 30 days. Dow Chemical has a market cap of $62.7 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.66 and a short float of 2.2% with 3.09 days to cover. Shares are up 16.8% year-to-date as of the close of trading on Monday.

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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, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and reasonable valuation levels. 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 65.2% when compared to the same quarter one year prior, rising from $635.00 million to $1,049.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.5%. Since the same quarter one year prior, revenues slightly increased by 0.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.67, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.21, which illustrates the ability to avoid short-term cash problems.
  • Powered by its strong earnings growth of 71.73% and other important driving factors, this stock has surged by 48.71% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.

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