The answer to the headline is YES!…Dow Inc (DOW) is one of the most attractive value stocks for the year ahead.
Why?
Let me spell it out for you now…
As you know, DOW is a diversified chemical manufacturing company combining science and technology to develop innovative solutions that are essential to human progress. It’s well diversified portfolio includes Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings.
This selection is in many ways the antithesis of the previous top value pick, Bristol-Myers Squibb (BMY) which was quite conservative. Here we are selecting a leading materials company to enjoy tremendous growth as the economy gets back on track later in 2023. Likely those good times continue for another 5-10 years just like the previous bullish cycle pushing EPS and share price higher.
An interesting part of the DOW story is their surprisingly low-cost structure that has allowed the company to withstand inflationary pressures better than most companies. It’s also in a position to pass on price increases given that its products are essential for so many industries. This combination points to healthy profit margins ahead.
The company has a Value Grade of A, which certainly makes sense with a P/E of only 6.6. It also has a Quality Grade of B which points to superior operational efficiency.
If that was not attractive enough, the company also provides tremendous income thanks to a 5% dividend yield. As rates start to come down later in 2023 it will make income stocks like DOW all the more attractive boosting its already impressive upside potential.
Want to Discover More Value Stocks?
DOW is just 1 of 7 attractive value stocks found in a new special report we just put together. Click the link below to claim your free copy now:
What To Do Next?
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- Why 2023 is a “Jekyll & Hyde” year for stocks
- 5 Warnings Signs the Bear Returns in Early 2023
- 8 Trades to Profit on the Way Down
- Plan to Bottom Fish @ Market Bottom
- 2 Trades with 100%+ Upside Potential as New Bull Emerges
- And Much More!
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Wishing you a world of investment success!
Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
CEO, Stock News Network and Editor, Reitmeister Total Return
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DOW shares were trading at $56.01 per share on Thursday morning, down $0.83 (-1.46%). Year-to-date, DOW has gained 11.15%, versus a 1.53% rise in the benchmark S&P 500 index during the same period.
About the Author: Steve Reitmeister
Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...
More Resources for the Stocks in this Article
Ticker | POWR Rating | Industry Rank | Rank in Industry |
DOW | Get Rating | Get Rating | Get Rating |
.INX | Get Rating | Get Rating | Get Rating |
DIA | Get Rating | Get Rating | Get Rating |
SPY | Get Rating | Get Rating | Get Rating |
QQQ | Get Rating | Get Rating | Get Rating |