Dow Inc. (NYSE:DOW) is -1.67 points lower today and the only thing that matters is where they go from here. You simply have to look deeper than the share price and explore the fundamentals and future growth potential. The stock value has plummeted by nearly -3.44% to $46.82 from its previous close of $48.49. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 1688372 contracts so far this session. DOW shares had a relatively better volume day versus average trading capacity of 3.83 million shares, but with a 0.74 billion float and a -7.6% 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 $56.29 per share. This means the stock has a potential increase of 20.23% from where the DOW share price has been trading recently.
Looking at the current readings for Dow Inc., the two-week RSI stands at 22.19. This figure suggests that DOW stock, for now, is overbought, meaning that the shares are not 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 11.53% at this stage. This figure means that DOW share price today is being overbought.
Technical chart claims that Dow Inc. (DOW) would settle between $49.83/share to $51.16/share level. However, if the stock price goes below the $47.6 mark, then the market for Dow Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $46.7 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -2.54. 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 SunTrust raised their recommendation on shares of DOW from Hold to Buy in their opinion released on December 09. Morgan Stanley analysts have lowered their rating of Dow Inc. (NYSE:DOW) stock from Overweight to Equal-Weight in a separate flash note issued to investors on December 02. Analysts at BMO Capital Markets are sticking to their Market Perform stance. However, on October 25, they lifted price target for these shares to $53 from $51.
DOW equity has an average rating of 2.42, with the figure leaning towards a bullish end. 17 analysts who tracked the company were contacted by Reuters. Amongst them, 9 rated the stock as a hold while the remaining 8 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. 8 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.
Moving on, DOW stock price is currently trading at 11.96X forward 12-month Consensus EPS estimates, and its P/E ratio is 13.5 while for the average stock in the same group, the multiple is 26.8. Dow Inc. current P/B ratio of 2.1 means it is trading at a premium against its industry’s 1.5.