Dow Inc., through its subsidiaries, engages in the provision of various materials science solutions for packaging, infrastructure, mobility, and consumer applications in the United States, Canada, Europe, the Middle East, Africa, India, the Asia Pacific, and Latin America. The company operates through Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings segments. The Packaging & Specialty Plastics segment provides ethylene, and propylene and aromatics products; and polyethylene, polyolefin elastomers, ethylene vinyl acetate, and ethylene propylene diene monomer rubbers for mobility and transportation, consumer, wire and cable, and construction end-markets. The Industrial Intermediates & Infrastructure segment offers purified ethylene, ethylene and ethanol amines, propylene glycol and polyether polyols, aromatic isocyanates and coatings, adhesives, sealants, elastomers, and composites. This segment also provides caustic soda, and ethylene dichloride and vinyl chloride monomers; and cellulose ethers, redispersible latex powders, and acrylic emulsions. The Performance Materials and Coatings segment provides architectural paints and coatings, and industrial coatings that are used in maintenance and protective industries, wood, metal packaging, traffic markings, thermal paper, and leather; and silicon metal, siloxanes, and intermediates used as key materials in manufacturing differentiated downstream silicone products. It also engages in property and casualty insurance, as well as reinsurance business. Dow Inc. was incorporated in 2018 and is headquartered in Midland, Michigan.

Dow Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, без изменений

Слабый индекс, незначительно вырос. Нейтральный рынок.

Сильный индекс, без изменений. Нейтральный рынок.

Слабый индекс, незначительно вырос. Приток средств в лонги остается на невысоком уровне.

Weak index, slightly up. The inflow of funds into longs remains at a low level.

Сильный индекс, без изменений. Отток средств из шортов на высоком уровне.

Strong index, flat. Outflow of funds from shorts at a high level.

Dow Inc. DOW used its second-quarterearnings callto emphasize cost actions, portfolio changes and disciplined execution as management focuses on improving earnings durability. The company highlighted stronger pricing, margin recovery and cash generation while acknowledging continued market volatility.
Management also provided a cautious third-quarter outlook, pointing to polyethylene margin pressure and seasonal factors while expecting additional benefits from restructuring and productivity initiatives.
DOW Advances Cost and Portfolio Actions
CEO Karen Carter said that Dow is focused on three priorities: targeted growth, improving portfolio competitiveness and maintaining balanced capital allocation. Carter emphasized using the company’s global assets and customer relationships to strengthen long-term competitiveness.
DOW reported second-quarter operating EPS of $1.44, beating the Zacks Consensus Estimate of $1.25. Revenues of $12.09 billion slightly surpassed the Zacks Consensus Estimate of $12.04 billion.
Dow Inc. Price, Consensus and EPS Surprise
The company said self-help efforts generated more than $300 million of benefits during the quarter. Management increased expected in-year benefits from these actions to more than $1.3 billion.
Dow Sees Strength in Key Markets
Dow’s second-quarter sales increased 20% year over year, supported by higher prices across regions. Operating EBITDA was $2.3 billion, while operating EBIT improved significantly from the prior-year period.
The company’s Packaging & Specialty Plastics segment was a major contributor, with sales rising 27% year over year to $6.4 billion. Dow attributed this improvement to higher polyethylene prices and stronger integrated margins.
Dow noted that data center demand remains a growth area, particularly for thermal management solutions and Industrial Solutions products. Carter highlighted opportunities in electronics, mobility and specialty applications.
DOW Details Third-Quarter Outlook
CFO Jeffrey Tate said that Dow expects third-quarter EBITDA of approximately $1.7 billion. The outlook indicates anticipated polyethylene margin compression following June price changes and typical seasonal patterns after strong second-quarter demand.
Management expects about $130 million of sequential benefits from self-help actions during the third quarter. These gains are expected to offset planned maintenance and the absence of certain second-quarter benefits.
Dow also highlighted risks from geopolitical tensions, logistics constraints and uneven regional demand. The company said market conditions remain volatile, particularly due to ongoing disruptions affecting energy and feedstock markets.
Dow Builds Specialty Growth Platforms
Dow said it is reshaping the silicones business by reducing higher-cost upstream capacity and expanding downstream opportunities. The company expects the Barry, U.K. siloxanes shutdown to provide a $60 million EBITDA uplift in the second half of 2026.
Management said specialty silicones investments are focused on faster-growing markets, including electric vehicles, consumer electronics, healthcare and data centers. Carter noted that these downstream markets are expected to deliver stronger returns.
The company also discussed its Dow Coolant Care Network, which supports data center thermal management needs. Management views the offering as a way to expand both revenue opportunities and service capabilities.
DOW Addresses Analyst Concerns
A Morgan Stanley analyst asked about the Alberta project and whether Dow could bring in a partner. Carter said that the company remains focused on completing the project while staying disciplined on returns.
A JPMorgan analyst questioned the timing of cost savings and capital allocation priorities. Tate said that debt reduction remains the first priority, with share repurchases not expected during 2026.
Analysts also questioned polyethylene assumptions. Carter said that improving oil prices, declining inventories and stronger order activity could provide upside if current market conditions continue.
Dow Focuses on Financial Flexibility
Dow confirmed that it is prioritizing balance sheet strength, maintaining approximately $14 billion in liquidity and directing excess cash toward deleveraging. Management noted that there are no substantive debt maturities until 2029.
The company expects working capital actions to release more than $500 million in the second half of 2026. Management also confirmed progress from restructuring efforts, including implemented role reductions and site transformation initiatives.
Carter said that Dow’s approach remains centered on improving productivity, strengthening its asset base and focusing investment on attractive markets. The company continues to position its actions around longer-term competitiveness.
Zacks Signals Point to a Mixed Setup
DOW carries a Zacks Rank #3 (Hold), indicating that the stock’s earnings estimate revision trends are currently consistent with a neutral outlook. The Zacks Rank can change as analysts update earnings expectations following new company information. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has a Value Score of B and VGM Score of B, while its Growth Score is C and Momentum Score is F. Zacks Style Scores are designed to complement the Zacks Rank by evaluating value, growth and momentum characteristics, with stronger scores indicating more favorable attributes.
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Dow Q2 Earnings Call Focuses on Cost Actions and Portfolio Shift

Dow Inc. DOW reported second-quarter 2026 adjusted earnings per share of $1.44 per share, reversing the year-ago loss of 42 cents per share. The figure beat the Zacks Consensus Estimate of $1.25 by 15%. The year-over-year improvement was mainly driven by higher prices and benefits from Dow’s self-help initiatives.
Including one-time items, such as costs associated with the Transform to Outperform program, partially offset by an income tax adjustment,the company reported earnings per share of 99 cents in the quarter compared to the year-ago quarter’s loss of $1.18.
Net sales rose 19.7% year over year to around $12.1 billion and beat the consensus estimate of $11.6 billion by 3.8%. Local prices increased 20%, while volume declined 1% as planned maintenance weighed on Packaging & Specialty Plastics.
GAAP net income was $802 million in the reported quarter compared with a net loss of $801 million a year ago. Operating EBITDA increased to $2.3 billion from $703 million.
Dow Inc. Price and Consensus
DOW’s Segment Highlights
Packaging & Specialty Plastics sales rose 27% year over year to $6,385 million. The figure fell behind our estimate of $6.7 billion. Volume fell 4% due to declines in both businesses, including higher planned maintenance in Hydrocarbons & Energy, which reduced merchant sales. Lower polyethylene volumes in EMEAI and Asia Pacific also reflected the Middle East conflict. Higher polyethylene and olefins prices more than offset the volume pressure.
Industrial Intermediates & Infrastructure sales increased 14% year over year to $3.2 billion. The figure surpassed our estimate of $3.04 billion. Volume declined 2% as lower demand in Polyurethanes & Construction Chemicals, including the effects of the Middle East conflict, outweighed growth in Industrial Solutions. Industrial Solutions volumes benefited from recent alkoxylation investments and increased demand for data center applications.
Performance Materials & Coatings sales advanced 11% year over year to $2.4 billion. The figure beat our estimate of $2.2 billion. Volume grew 6%, supported by gains across both businesses and strength in downstream silicones. Consumer Solutions benefited from higher demand across consumer, electronics and home care applications, while Coatings & Performance Monomers recorded increased acrylic monomers and architectural coatings volumes.
DOW’s Financials
Cash flow from operating activities for continuing operations was $1.3 billion, reversing the year-ago use of $470 million. The improvement was primarily driven by higher earnings across all businesses, which more than offset an expected working capital build associated with revenue growth.
Cash and cash equivalents were $3.97 billion as of June 30, 2026, up from $3.8 billion at the end of 2025. Shareholder returns through dividends totaled $253 million during the quarter.
DOW's Outlook
Dow expects approximately $200 million in additional benefits from Transform to Outperform during 2026. This raises the company’s expected total in-year benefits from self-help initiatives to more than $1.3 billion.
For the second half of 2026, management plans to focus on growth and innovation in attractive end markets, investments to strengthen the portfolio and balanced capital allocation. Dow expects the growth and productivity benefits from Transform to Outperform to accelerate through the remainder of 2026 and into 2027.
DOW’s Stock Price Performance
DOW’s shares have gained 24.7% in the past year against the industry’s decline of 0.8%.
Image Source: Zacks Investment Research
DOW’s Zacks Rank & Key Picks
DOW currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Carpenter Technology Corporation CRS, Kronos Worldwide, Inc. KRO and Avient Corporation AVNT.
Carpenter Technology is slated to report fourth-quarter 2026 results on July 30. The Zacks Consensus Estimate for earnings is pegged at $10.58 per share, indicating 41.44% year-over-year growth. CRS sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kronos is scheduled to report second-quarter fiscal 2026 results on Aug. 5. The Zacks Consensus Estimate for KRO’s second-quarter loss per share is pegged at 33 cents, indicating 65.63% year-over-year growth. KRO flaunts a Zacks Rank #1 at present.
Avient is slated to report second-quarter 2026 results on Aug. 6. The consensus estimate for AVNT’s earnings per share is pegged at $3.08. AVNT presently carries a Zacks Rank #2 (Buy).
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DOW Q2 Earnings Beat Estimates on Higher Pricing and Self-Help Actions

For the quarter ended June 2026, Dow Inc. (DOW) reported revenue of $12.09 billion, up 19.7% over the same period last year. EPS came in at $1.44, compared to -$0.42 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $12.04 billion, representing a surprise of +0.41%. The company delivered an EPS surprise of +15.2%, with the consensus EPS estimate being $1.25.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Dow Inc. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Performance Materials & Coatings: $2.36 billion versus the three-analyst average estimate of $2.16 billion. The reported number represents a year-over-year change of +10.9%.
Revenues- Corporate: $180 million versus the three-analyst average estimate of $162.67 million. The reported number represents a year-over-year change of +9.8%.
Net Sales- Packaging & Specialty Plastics: $6.39 billion versus $6.67 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +27.1% change.
Net Sales- Industrial Intermediates & Infrastructure: $3.17 billion versus $3.05 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +13.6% change.
Operating EBITDA- Packaging & Specialty Plastics: $1.64 billion versus $1.89 billion estimated by three analysts on average.
Operating EBITDA- Corporate: $-1 million compared to the $-48.33 million average estimate based on three analysts.
Operating EBITDA- Performance Materials & Coatings: $291 million compared to the $274.51 million average estimate based on three analysts.
Operating EBITDA- Industrial Intermediates & Infrastructure: $383 million versus $42.48 million estimated by three analysts on average.
Shares of Dow Inc. have returned +6.4% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Compared to Estimates, Dow Inc. (DOW) Q2 Earnings: A Look at Key Metrics

(RTTNews) - Dow Inc. (DOW) will host a conference call at 8:00 AM ET on July 23, 2026, to discuss Q2 26 earnings results.
To access the live webcast, log on to https://investors.dow.com/en/events-and-presentations/default.aspx
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Dow Inc. Q2 26 Earnings Conference Call At 8:00 AM ET

(RTTNews) - Dow (DOW) reported second quarter GAAP net income of $802 million compared to a loss of $801 million, last year. GAAP profit per share was $0.99 compared to a loss of $1.18. Operating EBIT was $1.6 billion, up $1.7 billion year-over-year, primarily driven by higher prices as well as the self-help initiatives. Operating profit per share was $1.44, compared to a loss of $0.42.
Net sales were $12.1 billion, up 20% year-over-year, reflecting increases in all operating segments and regions. Volume decreased 1% year-over-year.
In pre-market trading on NYSE, Dow shares are up 3.49 percent to $32.32.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Dow Reports Net Income In Q2

Dow Inc. DOW is slated to come up with second-quarter 2026 results before the opening bell on July 23. While DOW is expected to have benefited from its cost and productivity initiatives, soft demand due to weak global economic activities and input cost headwinds are likely to have weighed on its second-quarter performance.
The Zacks Consensus Estimate for second-quarter earnings has been revised 23.7% upward in the past 60 days. The consensus estimate for earnings is pegged at $1.20 per share, suggesting a 385.7% year-over-year increase.
DOW surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once. It has a trailing four-quarter negative earnings surprise of roughly 38.2%, on average.
Q2 Earnings Whispers for DOW Stock
Our proven model does not conclusively predict an earnings beat for DOW this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Dow has an Earnings ESP of -3.37% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping DOW’s Q2 Results
Dow is expected to have benefited from cost-saving and productivity actions in the second quarter. Dow is taking action to cut costs by $1 billion to drive margins. It expects to achieve the majority of the cost savings through reductions in direct and labor costs. Dow realized more than $400 million of benefits from these actions in 2025, with the remaining benefits expected by 2026.
DOW has launched the “Transform to Outperform” initiative to improve productivity, reduce complexity, streamline its end-to-end processes and enable improved returns. The plan targets at least $2 billion near-term operating EBITDA improvement, with two-thirds of the benefits expected to be realized from productivity improvements. The company expects EBITDA benefits of roughly $500 million from this program in 2026. It expects to deliver roughly $1.1 billion in benefits from self-help actions this year.
Dow is expected to have faced headwinds from demand softness in the quarter to be reported. Lower consumer spending amid inflationary pressures is affecting demand in Europe. Construction and manufacturing activities remain soft in the region. Demand in Asia has been affected by a weaker demand recovery in China. The property sector in China remains sluggish, with declining new home prices.
Inflationary pressures are impacting consumer durables and building and construction demand. Demand in infrastructure, including residential construction, remains weak. Dow is also seeing softness in automotive in Europe due to weak demand. Higher costs are also expected to impact the U.S. automotive market in 2026. Weak conditions across these markets are likely to have impacted volumes in the second quarter.
DOW also faces challenges from higher feedstock costs in Asia and Europe. The Middle East conflict and the blockade of the Strait of Hormuz have led to significant supply disruptions and feedstock cost pressure in these regions. Elevated feedstock and energy costs are expected to have weighed on margins in the second quarter.
Dow Stock’s Price Performance and Valuation
DOW’s shares have gained 2.4% over the past year, outperforming the Zacks Chemicals Diversified industry’s 6.3% decline while underperforming the S&P 500’s increase of 21.2%. Its peers, LyondellBasell Industries N.V. LYB and Eastman Chemical Company EMN have lost 7.2% and 13.9%, respectively, while BASF SE BASFY has gained 6.7% over the same period.
DOW’s One-year Price Performance
From a valuation standpoint, DOW is currently trading at a forward price-to-sales ratio of 0.49, below the industry’s 0.88. DOW is trading at a discount to LyondellBasell, Eastman Chemical and BASF. Dow has a Value Score of B, while LyondellBasell, Eastman Chemical and BASF have a Value Score of A, each.
DOW’s P/S F12M Vs. Industry, LYB, EMN and BASFY
Investment Thesis for DOW Stock
DOW benefits from its differentiated portfolio and advantaged feedstock positions in the Americas. It remains focused on investing in attractive areas and executing high-return incremental growth projects in cost-advantaged regions. Dow is also committed to maintaining cost and operational discipline. Moreover, it has a strong balance sheet and generates substantial cash flows, which allow it to fund its growth investments and drive shareholder value.
The challenges facing DOW include soft demand conditions triggered by elevated inflation, low consumer confidence, and geopolitical tensions, particularly in the building and construction, and durable goods markets. It also faces margin pressure from higher feedstock costs in Asia and Europe.
How Should Investors Play the DOW Stock?
Dow benefits from its differentiated portfolio and feedstock advantages in the Americas and maintains a strong focus on cost control and operational efficiency. However, DOW is exposed to weak demand in a challenging environment as well as cost headwinds in Europe and Asia, which may weigh on its near-term performance. Holding onto the DOW stock will be prudent for investors who already own it, awaiting more clarity on the company’s prospects following its forthcoming earnings release.
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BASF SE (BASFY) : Free Stock Analysis Report
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Going Into Q2 Earnings, Is DOW Stock a Buy, a Sell, or Hold?

The upcoming report from Dow Inc. (DOW) is expected to reveal quarterly earnings of $1.20 per share, indicating an increase of 385.7% compared to the year-ago period. Analysts forecast revenues of $12.01 billion, representing an increase of 18.8% year over year.
The consensus EPS estimate for the quarter has undergone a downward revision of 10.5% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Given this perspective, it's time to examine the average forecasts of specific Dow Inc. metrics that are routinely monitored and predicted by Wall Street analysts.
The consensus among analysts is that 'Net Sales- Performance Materials & Coatings' will reach $2.16 billion. The estimate suggests a change of +1.4% year over year.
The average prediction of analysts places 'Revenues- Corporate' at $162.67 million. The estimate suggests a change of -0.8% year over year.
Analysts expect 'Net Sales- Packaging & Specialty Plastics' to come in at $6.66 billion. The estimate points to a change of +32.5% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Net Sales- Industrial Intermediates & Infrastructure' of $3.01 billion. The estimate suggests a change of +8% year over year.
Analysts predict that the 'Operating EBITDA- Packaging & Specialty Plastics' will reach $1.84 billion. Compared to the present estimate, the company reported $440.00 million in the same quarter last year.
The combined assessment of analysts suggests that 'Operating EBITDA- Performance Materials & Coatings' will likely reach $274.51 million. Compared to the current estimate, the company reported $344.00 million in the same quarter of the previous year.
View all Key Company Metrics for Dow Inc. here>>>
Over the past month, shares of Dow Inc. have returned -5.7% versus the Zacks S&P 500 composite's +0.6% change. Currently, DOW carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Seeking Clues to Dow Inc. (DOW) Q2 Earnings? A Peek Into Wall Street Projections for Key Metrics

Key Points
Dow leverages a massive global manufacturing footprint and diverse product portfolio to serve the electronics and construction sectors.
LyondellBasell is a leader in sustainable polymer technologies and maintains positive free cash flow despite industry-wide revenue headwinds.
Which of these chemical industry giants is the better portfolio addition for investors navigating the 2026 market?
As the global economy adjusts to shifting demand, many investors look to materials for stability. Choosing between Dow Holdings Inc (NYSE:DOW) and LyondellBasell Industries N.V. (NYSE:LYB) requires comparing two industry heavyweights with distinct paths.
Both companies are leaders in the chemicals industry, yet they offer different risk profiles and growth strategies. Dow focuses on high-volume materials science for construction and packaging, while LyondellBasell is a powerhouse in polymers and polyolefin technologies. We compare their financials and valuations to help you decide which stock fits your strategy.
The case for Dow Holdings
Dow produces materials for the agriculture, construction, and electronics markets. The business serves a global customer base through its 91 manufacturing sites located in 29 countries. It does not depend on any single customer for a significant share of its sales, reducing its reliance on individual corporate clients. The company leverages strategic joint ventures like EQUATE and Sadara, both major Middle East petrochemical firms, to reach international markets. These markets are essential components of the broader materials and metal stocks landscape.
In FY 2025, revenue slipped to $40 billion, down from nearly $43.0 billion the previous year. This roughly 7.0% decline in revenue contributed to a net loss of $2.6 billion for the period. This figure reflects a significant swing from the $1.1 billion net income of the prior fiscal year.
The company's balance sheet as of its December 2025 report showed a debt-to-equity ratio of 1.2x. This ratio measures total debt against shareholder equity, indicating that Dow uses a moderate amount of debt to finance its operations. Free cash flow for the period was negative $1.4 billion, which represents cash left over after paying for capital investments.
The case for LyondellBasell
LyondellBasell is a global leader in polymers and polyolefin technologies used in transportation and food safety. Similar to its peer, no single customer accounted for 10% or more of its total revenues in 2025, providing a diversified revenue base. The company relies on key joint ventures, such as the Louisiana Integrated PolyEthylene partnership with Sasol Ltd (NYSE:SSL), for production capacity. It also operates manufacturing sites in Saudi Arabia, Indonesia, and Thailand to serve its global markets. These operations support a wide range of industries that rely on advanced chemical production.
During FY 2025, revenue was $30.2 billion, representing a significant decline of roughly 25% from the prior year. This drop in sales resulted in a net loss of $743 million for the fiscal year. This result followed a period of higher profitability and higher revenue in the preceding two years.
As of its December 2025 balance sheet, the debt-to-equity ratio was 1.6x. This value, which compares total debt to shareholder equity, indicates that the company uses more debt relative to its equity than some of its primary competitors. Free cash flow was positive, at $384 million, representing the actual cash generated after accounting for capital expenditures like equipment and plant upgrades.
Risk profile comparison
Dow faces significant legal exposure, including ongoing class actions and asbestos-related liabilities arising from its Union Carbide subsidiary. Recently, the company has faced a 2026 chlorpyrifos-exposure lawsuit and environmental litigation over plastic pollution. Additionally, its Path2Zero decarbonization strategy carries execution risks, as failure to meet climate targets or secure renewable infrastructure could impact its financial performance. Earnings also remain highly exposed to global chemical supply imbalances and volatility in feedstock prices.
LyondellBasell is highly sensitive to the supply-demand cycles of the chemical industry, which can cause large swings in earnings. Its profitability depends heavily on crude oil and natural gas prices, making it vulnerable to energy market volatility. The company also faces technical risks with large projects like its MoReTec plastics recycling facility, while competitors like Chevron (NYSE:CVX) navigate similar regulatory pressures regarding greenhouse gas emissions. Stringent environmental regulations governing waste management and plastics recyclability present ongoing legal risks.
Valuation comparison
LyondellBasell trades at a lower Forward P/E than Dow, while Dow has a similar P/S ratio. These metrics compare price to future earnings estimates and revenue.
Metric
Dow
LyondellBasell Industries N.V.
Sector Benchmark
Forward P/E
10.3x
7.5x
25.5x
P/S ratio
0.6x
0.6x
Sector benchmark uses the SPDR XLB sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
For Dow, there has been weakness in demand across many of its core businesses, and lower prices, coupled with high costs, have eroded margins. But for this chemical giant, the war with Iran brings benefits. Dow has been affected in recent quarters by oversupply. The on-again, off-again closure of the Strait of Hormuz is an opportunity for Dow to capitalize on supply pressures stemming from supply-chain disruptions, which will likely take a year or more to undo even if the conflict is resolved soon.
That has 2026 looking better for Dow, with sales seen rising by analysts to $44.7 billion, about a 10.5% rise. Net income should reappear on the ledger, with $1.8 billion projected by Wall Street.
LyondellBasell is in much the same boat as Dow. Many of its businesses have experienced weakness. But the Iran war provides an opportunity for the chemical giant to fill demand in Europe and elsewhere that would normally have been filled from the Middle East and other regional plants. Some 70% of global polypropylene supply is sourced through the Strait of Hormuz (both the product itself and its feedstocks). That should allow LyondellBasell to utilize U.S. production capacity that has lain idle in recent years
Those dynamics should get LyondellBasell back to profitability in 2026, with Wall Street projecting net income of $3.25 billion from sales of $34.5 billion, which would be 14% higher than in 2025.
Both Dow and LyondellBasell may be overlooked by investors at times, but their products are essential to the global economy. LyondellBasell’s more affordable P/E and P/S ratios make it the choice for investors looking for materials exposure in 2026.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Dow vs. LyondellBasell Industries: Which Materials Stock Is a Better Buy in 2026?

Investors in Dow Inc. DOW need to pay close attention to the stock based on moves in the options market lately. That is because the Dec 18, 2026 $12.50 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for Dow, but what is the fundamental picture for the company? Currently, Dow is a Zacks Rank #3 (Hold) in the Chemical - Diversified Industry that ranks in the Bottom 33% of our Zacks Industry Rank. Over the last 60 days, two analysts have increased their earnings estimate for the current quarter, while none have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter to move from 97 cents per share to $1.20 per share in the same time period.
Given the way analysts feel about Dow right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Are Options Traders Betting on a Big Move in Dow Stock?

Dow Inc. DOW exited the first quarter with solid liquidity of around $14 billion, including cash and cash equivalents of roughly $4.1 billion. It generated solid cash flow from operating activities of roughly $1.1 billion in the first quarter.
DOW’s strong balance sheet and substantial cash flows support capital allocation, enabling it to finance its growth investments in higher-value businesses and regions and drive shareholder value while navigating a challenging macroeconomic environment. It remains focused on growth actions in attractive end markets and executing high-return incremental growth projects in cost-advantaged regions, leveraging strong financial health.
Dow returned $1.5 billion to shareholders through dividends in 2025. Dow has a policy of returning roughly 45% of its operating net income through dividends. It paid $252 million in dividends in the first quarter. It has no substantial long-term debt maturities until 2029.
Looking across the competitive landscape, LyondellBasell Industries N.V. LYB had $2.64 billion in cash and cash equivalents as of the end of the first quarter. LYB’s total available liquidity was $7.3 billion. LyondellBasell generated $2.6 billion in cash from operating activities over the 12 months (ending March 31, 2026) and achieved 111% cash conversion.
Eastman Chemical Company EMN ended the first quarter with cash and cash equivalents of $665 million, up from $418 million at the end of the prior-year period. EMN’s cash and cash equivalents rose $99 million sequentially from $566 million at the beginning of the quarter. Eastman Chemical generated around $1 billion in operating cash flow in 2025 and sees similar cash flows in 2026.
The Zacks Rundown for DOW
Shares of Dow have lost 5.9% in the past year compared with the Zacks Chemicals Diversified industry’s decline of 2.6%.
From a valuation standpoint, DOW is currently trading at a forward 12-month earnings multiple of 11.72, a 13.1% discount to the industry average of 13.49X. It carries a Value Score of A.
The Zacks Consensus Estimate for DOW’s 2026 and 2027 earnings implies a year-over-year rise of 395.7% and a decline of 31.6%, respectively. The EPS estimates for 2026 and 2027 have been trending higher over the past 60 days.
DOW stock currently carries a Zacks Rank #3 (Hold).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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