ECL - Here's Why You Should Hold Onto Dow Stock for Now | Benzinga
Dow Inc. (NYSE: DOW) is expected to gain from cost and productivity actions and investment in high-return projects. However, it faces headwinds from soft demand due to weak global economic activities.
The company's shares are up 14.7% over a year, compared with a 1.6% rise recorded by its industry.
Image Source: Zacks Investment Research
Let's find out why this Zacks Rank #3 (Hold) stock is worth retaining at the moment.
Cost Actions & High-return Growth Projects Aid DOW
Dow focuses on maintaining cost and operational discipline. The company is realizing a full $300 million EBITDA run rate benefit from restructuring programs being initiated in the third quarter of 2020. DOW is implementing targeted actions focused on optimizing labor and purchased service costs, lowering turnaround spending and boosting productivity. Its targeted actions delivered $1 billion in cost savings for full-year 2023.
Dow also remains focused on investing in attractive areas through highly accretive projects. It is investing in several high-return growth projects including the expansion of downstream silicones capacity.
Dow's disciplined and balanced capital allocation priorities are also supporting its Decarbonize and Grow strategy to deliver long-term value creation for its shareholders. It is advancing its Decarbonize and Grow and Transform the Waste strategies, which are expected to deliver more than $3 billion ...