Best
Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.
Growth Stock Analysis As of 29 July 2023
NYSE: DOW
- The business model of Dow Inc. revolves around being a leading materials science company that manufactures and sells a diverse range of chemical, plastic, and agricultural products. Dow offers a wide array of products, including chemicals, plastics, performance materials, specialty products, and agricultural solutions to various industries such as automotive, construction, packaging, electronics, and agriculture.
Dow invests significantly in research and development to innovate new products, improve existing ones, and find sustainable solutions. Their focus on technology and innovation drives their competitiveness in the market. - This business is working in the B2B space, (Provides products and services to another business.
- Dow integrates vertically along the value chain by manufacturing key raw materials used in their products. This integration allows them to control costs and enhance supply chain efficiency.
- Dow works closely with customers to understand their needs and provide tailored solutions. They collaborate with clients to develop customized products and applications that meet specific requirements.
The Market Segment for which they provide their Products and services.
Agriculture, Feed and Animal Care | Beauty and Personal Care | Building, Construction and Infrastructure
Chemical Manufacturing and Industrial | Consumer Goods and Appliances Electronics | Films, Tapes and Release Liners Food and Beverage | Healthcare and Hygiene Home Care | Industrial and Institutional Cleaning
Mobility Oil, Gas and Mining | Packaging, Paints, Inks and Coatings | Power, Water and Telecommunications
Pulp and Paper | Textiles, Leather and Nonwovens
- Top Shareholdings of DOW:
Holder Shares % Out Value
Vanguard Group Inc 61,539,356 8.70% 3,412,972,627
Blackrock Inc. 47,522,812 6.72% 2,635,615,110
State Street Corporation 35,558,725 5.03% 1,972,086,855
Pzena Investment Management Llc 14,901,209 2.11% 826,421,037
Morgan Stanley 14,483,785 2.05% 803,270,702
Capital World Investors 14,106,923 1.99% 782,369,936
Geode Capital Management, LLC 12,901,559 1.82% 715,520,450
JP Morgan Chase & Company 11,412,196 1.61% 632,920,379
Dimensional Fund Advisors LP 8,535,549 1.21% 473,381,539
Northern Trust Corporation 8,232,836 1.16% 456,593,077
What we think are PROs of DOW:
- Value Chain Integration: Vertical integration along the value chain allows Dow to optimize costs and ensure efficiency in their operations. Dow’s commitment to sustainability attracts environmentally-conscious customers and enhances its reputation.
- Diverse Product Portfolio: Dow offers a wide range of chemical, plastic, and agricultural products, allowing them to cater to various industries and leverage opportunities in multiple sectors.
- Customer-Centric Approach: Dow works closely with customers to understand their needs, delivering customized solutions and building strong relationships.
- Financial Stability: Dow’s position as a leading materials science company provides financial stability and resilience during economic fluctuations.
- Market Leadership: Strong Brand Recognition of Dow’s long-standing presence in the industry and strong brand recognition contribute to customer trust and loyalty.
What we think the RISKs are in DOW:
- Economic Factors: Dow’s business is sensitive to economic fluctuations and changes in global economic conditions, affecting demand for its products.
- Commodity Price Volatility: Dow’s operations depend on raw materials and energy prices, making them vulnerable to price fluctuations and cost pressures.
- Competitive Pressures: Dow faces intense competition from other chemical and material science companies, impacting pricing and market share.
- Geopolitical Risks: International operations expose Dow to geopolitical risks, including trade disputes, sanctions, and political instability.
FUNDAMENTALS:
Dividend (Yield) = 2.80%
Market Cap. = 39.228B
Beta = 1.33
P/E Ratio = 22.71
52 wk Range = 42.91 – 60.88
Revenue = 49.25B
EPS = 2.44
- Technicals:
– Big Breakout with High Volumes.
– Breaking the range of the consolidation zone from a rectangular box.
– Weekly candle closes above 200 days Exponential Moving Average and Above the Trendline.
– RSI (Weekly) is showing a bullish divergence breakout from around 50 levels.
– Trendline and Range breakout at the same time give more confirmation about the trade.
– Sharply increase in volume around price breakout levels shows more bullishness in this stock.
Entry: 55.90
Target: 70 & 85
Stoploss: 51.50
Our Final Thought:
Dow Inc. revolves around being a leading materials science company that manufactures and sells a diverse range of chemical, plastic, and agricultural products. Dow Inc. is a leading materials science company with a diverse product portfolio, global presence, and customer-centric approach. Their focus on innovation and research drives market competitiveness. While economic fluctuations, regulatory compliance, and geopolitical risks are the challenges because in the period of Recession this company may face very tough time because of slow construction and less expenditure by other businesses as it is fully dependent on the B2B sales. As of now, all countries are struggling to get out of recession and when it happens then this company will get directly benefit in the form of bulk orders from different companies of various sectors which leads to sharply increase in its share price. Now, at the time of fear of recession all around the world this is the best time to accumulate stocks of such companies and its technicals are also very good on chart.
Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.
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