With a market cap of around $24 billion, Dow Inc. (DOW) is a leading materials science company with a global footprint, offering innovative and sustainable solutions across packaging, infrastructure, mobility, and consumer markets. The company operates through three main segments: Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings.
Shares of the Midland, Michigan-based company have surpassed the broader market over the past 52 weeks. DOW stock has surged 49.5% over this time frame, while the broader S&P 500 Index ($SPX) has gained 10.8%. Moreover, shares of the company have increased 41.8% on a YTD basis, compared to SPX's 10.9% return.
Looking closer, shares of the materials science company have also outpaced the Materials Select Sector SPDR Fund's (XLB) 18.8% increase over the past 52 weeks.
Dow’s shares rose 4.7% on Oct. 22, after the company delivered better-than-expected Q3 2026 results, with adjusted EPS of $0.71 and issued an upbeat Q4 adjusted core profit forecast of approximately $1.54 billion, well above the consensus. Investor sentiment was boosted by expectations that higher polyethylene prices would outpace rising raw material and logistics costs, with global integrated polyethylene margins projected to improve by approximately $0.02 per pound in Q4, while sales at its Packaging and Specialty Plastics division increased more than 18% to $5.8 billion.
Additionally, Dow's aggressive cost-reduction initiatives, including plans to eliminate approximately 4,500 jobs (13% of its workforce), were expected to generate more than $200 million in benefits in the second half of 2026, supporting management's target of delivering over $1 billion in annual core profit improvements in both 2026 and 2027.
For the fiscal year ending in December 2026, analysts expect DOW's adjusted EPS to climb 368.1% year-over-year to $2.52. The company's earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 21 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, 14 “Holds,” and one “Strong Sell.”
This configuration is slightly less bullish than three months ago, with seven “Strong Buy” ratings on the stock.
On Oct. 23, BofA analyst Matthew DeYoe raised its price target on Dow to $32 while maintaining a “Neutral” rating.
The mean price target of $36.60 represents a 10.4% premium to DOW’s current price levels. The Street-high price target of $60 suggests a nearly 81% potential upside.
On the date of publication, Sohini Mondal did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.