Founded in 1897, Midland, Michigan-based Dow Inc. (DOW) is a material science company, providing a world-class portfolio of advanced, sustainable and leading-edge products. The company has a market capitalization of $23.2 billion and operates through Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings segments.
Shares of Dow have underperformed the broader market over the past year but have rallied in 2026. DOW stock has declined 19.4% over the past 52 weeks and has surged 30.9% on a YTD basis. In comparison, the S&P 500 Index ($SPX) has returned 12.2% over the past year and declined marginally in 2026.
Narrowing the focus, DOW has also underperformed the State Street Materials Select Sector SPDR ETF’s (XLB) 13.4% rise over the past 52 weeks, but has outperformed its 11.4% increase this year.
On Jan. 29, DOW shares fell 2.2% following the company’s release of its Q4 2025 earnings. The company’s net sales amounted to $9.5 billion and decreased 9% year-over-year, while also missing Wall Street estimates. The fall in its sales figures was attributed to lower sales across all its segments. Moreover, its loss per share of $0.34 was narrower than what Street’s analysts predicted by 26.1%. In addition, the company announced massive layoffs affecting approximately 4500 personnel and the adoption of AI models across its production line, leading to a decline in investor confidence.
For the fiscal year ending in December 2026, analysts expect DOW’s loss to shrink 85.1% year-over-year to $0.14 per share. The company has a mixed record of earnings surprise history. It has surpassed the Street’s bottom-line estimates in three of the past four quarters, while missing on one occasion.
DOW has a consensus “Hold” rating overall. Of the 20 analysts covering the stock, opinions include two “Strong Buys,” 17 “Holds,” and one “Strong Sell.” Wall Street’s mood has remained mostly stable for the stock in recent months.
On Jan. 30, Jefferies analyst Laurence Alexander maintained a “Hold” rating for Dow stock and raised its price target from $23 to $28. DOW’s mean price target of $28.67 sits under its current market prices. Its Street-high target of $35 suggests a robust 14.4% upside potential from current price levels.
On the date of publication, Anushka Mukherjee did not have (either directly or indirectly) positions 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.
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