Dow Inc. remains a long-term buy as operational improvements and cost controls position it for a potential turnaround despite ongoing industry headwinds. DOW's recent quarterly report showed a revenue decline but a return to positive net income, with financial fundamentals remaining solid and dividend risk reduced. The company is adapting to a tough external environment by improving efficiency and consolidating operations, limiting downside risk, and enhancing upside potential if sector conditions improve.
The Dogs of the Dow is a well-known strategy first published in 1991 by Michael O'Higgins.
Dow Inc. remains under pressure from weak demand, with Q3 net sales down 8% YoY and its flagship segment facing the steepest declines. Despite revenue weakness, DOW demonstrated strong cash flow improvements through better working capital management. Management is focused on cost reductions and efficiency by cutting 2025 CAPEX and planning $1 billion in annualized cost savings by 2026 year end.
Dow Inc. surged 13% after Q3 earnings beat on the bottom line, signaling a possible cyclical trough and renewed investor optimism. DOW's operational efficiencies, cost-cutting, and non-core divestitures are strengthening its balance sheet and positioning it for recovery. Despite bearish analyst sentiment and high trailing P/E, DOW offers compelling value as profitability could rebound quickly with an industry upturn.
The headline numbers for Dow Inc. (DOW) give insight into how the company performed in the quarter ended September 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
DOW posts a narrower-than-expected Q3 adjusted loss but misses sales estimates as lower prices drag revenue across segments.
Dow Inc. (DOW) came out with a quarterly loss of $0.19 per share versus the Zacks Consensus Estimate of a loss of $0.31. This compares to earnings of $0.47 per share a year ago.
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DOW faces soft global demand and pricing pressure, with cost cuts offering some support to its margins in Q3.
The three major US indices look as if they all are going to be strong, if the last few days are to be believed. This is a market that continues to see more of a “buy on the dips” scenario.
U.S. stock futures are in the red on Tuesday, following Monday's rally, with major benchmark indices inching lower pre-market.