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Dow Chemical Stock: Good Chemistry with Markets in November

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Series overview

In this series, we’ll look into Dow Chemical’s stock performance, critical business development, and other updates that occurred in the month of November. We’ll also discuss analysts’ latest recommendations along with the most recent valuations.

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Dow Chemical’s stock price

Dow Chemical (DOW) stock had a decent performance in November. It closed at $55.72—a gain of ~3.60% for the month ending November 30, 2016. The company’s positive performance can be attributed to better-than-expected 3Q16 earnings, a rise in the US markets after the presidential election, and developments in Sadara Chemical Company—a joint venture between Dow Chemical and Saudi Arabian Oil Company.

However, Dow Chemical underperformed the SPDR S&P 500 ETF (SPY) and E.I. du Pont de Nemours and Company (DD). They returned 3.7% and 7.0%, respectively, for November.

Dow Chemical’s November gains widened the 100-day moving average price gap. Dow traded ~4.6% above its 100-day moving average price of $53.28. The 14-day RSI (relative strength index) of 68 indicates that the stock is inching closer to an “overbought” situation. An RSI score of 70 means that a stock moved temporarily into an “overbought” position. An RSI score below 30 indicates that a stock moved temporarily into an “oversold” position.

As of November 30, 2016, Dow Chemical closed ~38.4% above its 52-week low of $40.26 and ~2.4% below its 52-week high of $57.10.

On a YTD (year-to-date) basis, Dow Chemical gained 8.9%. So far, Dow underperformed its peers such as DuPont and Eastman Chemical (EMN)—they rose 9.4% and 11.3%, respectively. However, Dow managed to outperform Monsanto (MON)—its peer in the agricultural segment. It returned 5.4% YTD.

In the next part, we’ll analyze the latest business updates from Dow Chemical.

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