An interesting stock that came up in some of our conversations today is Dow Inc. (NYSE:DOW). At current price of $44.62, the shares have already lost -2.23 points (-4.77% lower) from its previous close of $46.85. Should you buy or avoid them? The stock sets an active trading volume day with a reported 2263564 contracts so far this session. DOW shares had a relatively better volume day versus average trading capacity of 4.66 million shares, but with a 0.74 billion float and a 5.45% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for DOW stock indicates that the average analyst price target is $56.27 per share. This means the stock has a potential increase of 26.11% from where the DOW share price has been trading recently which is between $45.58 and $47.76. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $41.
The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Dow down nearly 750 points on losses in shares of Dow Inc., Walgreens Boots” and dated August 14, 2019.
Looking at the current readings for Dow Inc., the two-week RSI stands at 37.71. This figure suggests that DOW stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current DOW readings is similarly very revealing as it has a stochastic reading of 24.57% at this stage. This figure means that DOW share price today is being overbought.
Technical chart claims that Dow Inc. (DOW) would settle between $47.88/share to $48.91/share level. However, if the stock price goes below the $45.7 mark, then the market for Dow Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $44.55 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.15. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at RBC Capital Mkts lowered their recommendation on shares of DOW from Top Pick to Outperform in their opinion released on July 31. Susquehanna analysts have lowered their rating of Dow Inc. (NYSE:DOW) stock from Positive to Neutral in a separate flash note issued to investors on July 29. Analysts at Citigroup lowered the stock to a Neutral call from its previous Buy recommendation, in a research note that dated back to July 29.
DOW equity has an average rating of 2.25, with the figure leaning towards a bullish end. 24 analysts who tracked the company were contacted by Reuters. Amongst them, 11 rated the stock as a hold while the remaining 13 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 13 analysts rated Dow Inc. (NYSE:DOW) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.