With a market cap of $22.1 billion, Dow Inc. (DOW) is one of the world’s leading materials science companies, serving customers across high-growth markets including packaging, infrastructure, mobility, and consumer applications. With a global footprint, integrated assets, customer-focused innovation, and leading business positions, Dow aims to drive profitable growth while helping build a more sustainable future.
Shares of the Midland, Michigan-based company have surpassed the broader market over the past 52 weeks. DOW stock has surged 46.2% over this time frame, while the broader S&P 500 Index ($SPX) has gained 21.3%. Moreover, shares of the company have increased 30.5% on a YTD basis, compared to SPX's 13.3% return.
Looking closer, shares of the materials science company have also outpaced the State Street Materials Select Sector SPDR ETF's (XLB) 21.3% increase over the past 52 weeks.
Dow has outperformed over the past year due to aggressive cost-cutting, improving margins, higher plastics prices, and its structural U.S. natural-gas cost advantage.
Despite reporting better-than-expected Q2 2026 revenue of $12.09 billion and adjusted EPS of $1.44, Dow shares fell 1.1% on Jul. 23. The decline reflected concerns over weaker underlying demand, as overall sales volumes fell 1% year-over-year, including a 4% drop in Packaging & Specialty Plastics and 2% in Industrial Intermediates, alongside Middle East disruptions and higher turnaround costs. Investors were also disappointed by the cautious H2 outlook and lack of quantitative financial guidance, even though Dow raised expected 2026 restructuring benefits by $200 million to ~$700 million.
For the fiscal year ending in December 2026, analysts expect DOW's adjusted EPS to climb 367% year-over-year to $2.51. The company's earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 19 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, 11 “Holds,” and one “Moderate Sell.”
This configuration has remained unchanged over the past three months.
On Jul. 24, UBS increased Dow’s price target on Dow to $32 while maintaining a “Neutral” rating.
The mean price target of $35.68 represents a 16.7% premium to DOW’s current price levels. The Street-high price target of $46 suggests a 50.4% potential upside.
