12/27/2023 0 Comments Should i buy dow nowOlympic Steel currently sports a Zacks Rank #1 (Strong Buy). ZEUS, Commercial Metals Company CMC and Steel Dynamics, Inc. Quote Stocks to Considerīetter-ranked stocks worth considering in the basic materials space include Olympic Steel, Inc. Inflationary pressures are also expected to impact consumer durables and building and construction demand in Europe in the fourth quarter, affecting the Industrial Intermediates & Infrastructure segment.ĭow Inc. It also sees lower consumer spending in Europe in the quarter. The company expects global energy markets to remain volatile in the fourth quarter. The energy and feedstock inflation has resulted in reduced industrial production and consumer spending. The company also faces headwinds from weaker demand in Europe. As such, margins in these segments are likely to be hurt in the fourth quarter. Packaging & Specialty Plastics and Performance Materials & Coatings units are also expected to face challenges from a rise in energy costs in the quarter. The company’s Industrial Intermediates & Infrastructure segment is expected to continue to face cost headwinds in the fourth quarter stemming from higher energy costs in Europe. It faced higher energy costs in the third quarter, especially in Europe, which has witnessed a significant spike in costs. The Industrial Intermediates & Infrastructure unit also faces challenges from raw material inflation in Europe.ĭow is also exposed to headwinds from higher energy costs. This is expected to affect results in this segment. The company’s Packaging & Specialty Plastics segment faces headwinds from higher raw material costs and logistical challenges. Raw material and logistical constraints are likely to persist in the fourth quarter. The company is exposed to challenges from higher raw material costs. It generated cash flow from operating activities of $1.9 billion and returned $1.3 billion to shareholders in the third quarter of 2022 through dividends and share repurchases. The company is also committed to return value to its shareholders by leveraging healthy cash flows. Moreover, Dow has already completed 13 downstream silicones debottlenecking projects this year. Its fluidized catalytic dehydrogenation pilot plant in Louisiana is also expected to start up in fourth-quarter 2022 to manufacture propylene for coatings, electronics and durables markets. The company completed its Fort Saskatchewan expansion in 2021, which is expected to support higher polyethylene demand. It is investing in several high-return growth projects including the expansion of downstream silicones capacity. Dow also expects its investment in digital initiatives to drive efficiency and allow it to realize $300 million EBITDA run rate by 2025.ĭow also remains focused on investing in attractive areas through highly accretive projects. The company is realizing a full $300 million EBITDA run rate benefit from restructuring programs being initiated in the third quarter of 2020. It focuses on maintaining cost and operational discipline. The company should also gain from cost synergy savings and productivity actions. The momentum across these markers is likely to continue in the fourth quarter. The company saw strong demand for pharmaceutical, agricultural and energy applications in the third quarter of 2022. It is also benefiting from healthy demand in consumables and food packaging markets. What’s Favoring DOW?ĭow is seeing higher demand across a number of markets including personal care and mobility. Let’s find out why this Zacks Rank #3 (Hold) stock is worth retaining at the moment.
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