E I Du Pont De Nemours And Co (NYSE:DD) and The Dow Chemical Company (NYSE:DOW) are both big, lumbering chemical giants that continue to generate above-average returns while posting strong financial results. Both have seen shares rise, but this phenomenon may continue as the companies are both expected to grow. Also, momentum is definitely in their favor as investors are buying up shares and both are near or at 52-week highs.
For The Dow Chemical Company (NYSE:DOW), it starts with its diversified industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses. The portfolio has been a strong performer as The Dow Chemical Company (NYSE:DOW)’s Q1 financial results can attest. Some of the highlights include earnings per share growing 31% year-over-year with pricing gains, margin expansion and EBITDA growth. The big growth driver for the company is its emerging markets business for which the company recorded volume gains. The strong earnings results put the Street in buying mode as the shares rose over 5% on the day.
The growth is expected to continue as analysts are projecting EPS of $2.34 for the year, up 23%, followed up with a $2.90 figure in 2014, tacking on another 24% of EPS growth. The company’s focus on cost containment and cost cutting is evident in the strong EPS growth expected for the company on very marginally sales growth figures of 4% in each of the two years. Growth brings out buyers and nothing says buy like putting up EPS growth of 20% in back-to-back years.
The company’s focus on innovation has made The Dow Chemical Company (NYSE:DOW) one of the largest and most successful chemical companies in the world. The Dow Chemical Company (NYSE:DOW)’s innovation doesn’t stop at chemicals; the company is committed to innovating in all parts of its businesses. Further evidence of that was seen in February when The Dow Chemical Company (NYSE:DOW) signed on with EasyMed Services for a trial of the International Medical Passport. The Passport makes medical records accessible worldwide together with instant access to pre-approved doctors, clinics and hospitals around the world. Needless to say, this is an excellent added-value benefit for the company’s executives considering all of the travel they do with the company’s customers in 160 countries. The trial will be implemented as a first step to allow staff to securely download their medical files on to their smartphones. The Medical Passport works on all phone, PDA and web platforms and operates in over 80 countries with 300+ mobile carriers.