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Dow Chemical’s Stock Performance since Its 3Q16 Earnings

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Jan. 20 2017, Published 4:26 p.m. ET

Dow Chemical’s 4Q16 earnings announcement

Dow Chemical (DOW) is set to announce its 4Q16 earnings on January 26, 2017, before the market opens. In this series, we’ll look at DOW’s stock performance since its 3Q16 earnings release on October 27, 2016. We’ll also look at analysts’ revenue forecasts, EPS (earnings per share) estimates, recommendations, and valuations, which can help investors make their decisions.

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DOW’s stock performance

Dow Chemical (DOW) announced its 3Q16 earnings on October 27, 2016. Between that date and January 17, 2017, it gained 6.6% and outperformed its peer DuPont (DD), which returned ~6.3%.

DOW also managed to outperform the broad-based SPDR S&P 500 ETF (SPY), which returned 5.8% during this period. On the other hand, DOW underperformed LyondellBasell (LYB) and Eastman Chemical (EMN), which had returns of 12.0% and 14.7%, respectively, for the same period.

The positive performance by Dow Chemical can be attributed to positive business developments such as the inauguration of the Sadara Chemical Company, a joint venture between DOW and Saudi Arabian Oil Company (Saudi Aramco).

DOW also announced a new research and development center in Midland, Michigan. The facility will focus on R&D related to personal care products, energy-saving building technologies, and hybrid automobile solutions.

Moving average and relative strength index

Dow Chemical’s (DOW) gains widened the 100-day moving average price gap. DOW traded 4.7% above its 100-day moving average price of $54.75, indicating an upward trend in the stock. DOW’s 52-week low is $40.26, and the 52-week high is $59.33.

The 14-day relative strength index (or RSI) of 49 indicates that the stock is neither overbought nor oversold. An RSI score of 70 means that a stock has moved temporarily into an overbought situation, whereas an RSI score below 30 indicates that a stock has moved temporarily into an oversold position.

In the next part, we’ll look into analysts’ revenue estimates for Dow Chemical in 4Q16.

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