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Dow Inc. has been one of the worst performing components of the DJIA, down over 20% year-to-date . This is over 250 basis points worse than the broader index. Currently, it is trading just above its 52-week lows and at a forward pricing multiple of just 6.0x, which is a steep discount to both its historical average and the market at large. Adding to the company's woes is a series of downgrades from various Wall Street analysts.

KeyBanc, JPMorgan, and Jefferies have all lowered their ratings on the stock in recent months. Given the challenges facing the company, it is unlikely that the stock will rebound in the near-term.

Share Price

Most news stories about the company are positive, but on Thursday, the stock opened at $45.3 and closed at $44.8, down by 0.5% from the prior closing price of $45.0. This makes it the worst-performing stock in the index.

VI Analysis

The company's fundamentals reflect its long-term potential. The below analysis on DOW INC is made simple by VI app. Based on VI Star Chart DOW INC is strong in asset, and medium in dividend, growth, profitability. DOW INC has an intermediate health score of 6/10 considering its cashflows and debt, is likely to safely ride out any crisis without the risk of bankruptcy. DOW INC is classified as 'cheetah', a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. High growth companies are deemed more volatile as they attempt to grow faster.

Summary

The company has been hurt by a number of factors this year, including the coronavirus pandemic and the collapse in oil prices.

However, there are some signs that things may be starting to turn around for Dow Inc. The company recently reported better-than-expected earnings for the third quarter, and its stock has risen sharply in response.

In addition, Dow Inc. has been working on a number of initiatives to improve its business, including a cost-cutting program and a strategic review of its portfolio. Investors who are bullish on Dow Inc. believe that the company is taking the necessary steps to turn things around. They believe that the stock is currently undervalued and that it has significant upside potential.

$NYSE:DOW