Dow Inc. DOW introduced a business platform named MobilityScience for the transportation industry.
Notably, the MobilityScience platform is pursuing rapid development by addressing Mobility megatrends through material science creativity, and offering Dow’s partners and customers with a seamless experience.
Dow MobilityScience is anticipated to increase the experience of customers by improving service, lowering difficulties, driving creativity and linking customers more efficiently to Dow’s broad products and capacity range.
Per management, the company’s products and people can help meet the needs for a low-carbon economy. Moreover, it anticipates the transportation industry to recover with even more focus on sustainability. Further, Dow’s experience in material science and innovation are specifically placed to advance lower-carbon and digital solutions throughout transportation value chains.
Notably, the company’s transportation products comprise a broad spectrum of polyolefin, acrylic, polyurethane, specialty chemical and silicone technologies for electric vehicles, hybrids and internal combustion powertrains.
Its shares have lost 17.5% in the past year compared with the 15.4% decline recorded by the industry.
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Dow, on its first-quarter earnings call, said that it is seeing indications of a recovery from the virus outbreak in China, while still assessing the impacts of the same in other major geographies. Factoring in a gradual and sustainable return of global economic activities, and the reopening of economies in May and June, the company expects recovery as the year progresses.
Dow also said that it is taking actions to further strengthen its financial position. These include the reduction of operating expenses by $350 million and further trimming of capital expenditure target to $1.25 billion (a $750-million reduction from that in 2019). The company is also temporarily idling certain manufacturing units to align production to demand across markets, which have been significantly affected by restrained economic activities.
Dow Inc. Price and Consensus
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are AngloGold Ashanti Limited AU, Agnico Eagle Mines Limited AEM and Harmony Gold Mining Company Limited HMY.
AngloGold has a projected earnings growth rate of 109.9% for the current year. The company’s shares have surged around 67% in a year. It currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Agnico Eagle has a projected earnings growth rate of 53.6% for the current year. The stock has gained around 25% in a year. It currently has a Zacks Rank of 2.
Harmony Gold has an expected earnings growth rate of 264.3% for 2020. The company’s shares have gained 99.6% in the past year. It is presently a Zacks #2 Ranked player.
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