E I Du Pont De Nemours And Co (DD), Corning Incorporated (GLW): Is The Dow Chemical Company (DOW) Destined for Greatness?

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Dow’s rival E I Du Pont De Nemours And Co (NYSE:DD) also has plans to move away from the chemicals industry, and now intends to divest its Performance Chemicals division to realign its focus on more profitable businesses, particularly Agriculture and Nutrition. E I Du Pont De Nemours And Co (NYSE:DD)’s Agricultural segment grew 7% in its most recent quarter, and now contributes 37% of the company’s total revenues.

Dow’s electronics and communication business, which develops materials for smart devices, saw a rather underwhelming year-over-year growth of just 2%, but E I Du Pont De Nemours And Co (NYSE:DD)’s equivalent division reported a 9% drop in sales in the latest quarter. Fool contributor Neha Chamaria points out that 95% of smart devices in the market employ Dow’s innovations, which should help the company maintain its grip on what appears to be a business approaching or at a near-term cyclical peak. On the other hand, Dow and Corning Incorporated (NYSE:GLW)s joint venture Dow Corning has been weighed down by oversupply, which is likely to crimp any near-term profit distributions to both companies.

Putting the pieces together

Today, The Dow Chemical Company (NYSE:DOW) has many of the qualities that make up a great stock, but no stock is truly perfect. Digging deeper can help you uncover the answers you need to make a great buy — or to stay away from a stock that’s going nowhere.

The article Is Dow Chemical Destined for Greatness? originally appeared on Fool.com and is written by Alex Planes.

Fool contributor Alex Planes has no position in any stocks mentioned. The Motley Fool recommends Corning. The Motley Fool owns shares of Corning.

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