4. Dow Inc. (NYSE: DOW)
Number of Hedge Fund Holders: 41
PE Ratio: 10.99
Dow Inc. (NYSE: DOW) is ranked fourth on our list of 15 best value stocks to invest in. The stock has returned 36% to investors over the past year. The firm markets materials solutions and is based in Michigan. It was founded in 2018. The firm posted earnings results for the second quarter on July 22, reporting earnings per share of $2.72, beating market estimates by $0.29. The revenue over the period was $13.8 billion, up 36% year-on-year and beating market predictions by $1.1 billion.
On June 8, investment advisory Argus maintained a Buy rating on Dow Inc. (NYSE: DOW) stock and raised the price target to $78 from $69, noting that the firm was expected to benefit from the increased demand and stronger pricing for chemicals in North America.
At the end of the first quarter of 2021, 41 hedge funds in the database of Insider Monkey held stakes worth $717 million in Dow Inc. (NYSE: DOW), down from 47 the preceding quarter worth $711 million.
In its Q1 2020 investor letter, Evermore Global Advisors, an asset management firm, highlighted a few stocks and Dow Inc. (NYSE: DOW) was one of them. Here is what the fund said:
“With respect to Corteva, Dow and DuPont, COVID-19 related shutdowns that started in China painted an ominous picture for the global macro landscape, and we exited our positions in these three companies that comprised the former DowDupont (DWDP) beginning in February. Additionally, numerous channel checks we performed indicated that various supply chains were being disrupted and stressed, a poor sign for three companies that are very global in nature.
In retrospect, we remain generally happy with managements execution of many of the fundamental tenets of our original investment thesis in DWDP – the separations and spins were completed on time, the restructuring programs were well executed, and capital allocation across the three companies is much more streamlined and shareholder friendly today than in the past. Unfortunately, big picture issues that started with the U.S. – China trade war and remain today with the global collapse in macroeconomic activity has severely impacted each of the former DWDP companies. We will continue to remain close to each company and could reenter on or more of the aforementioned positions should an opportunity present itself.
We decided to move on from our position in Kraton, a specialty chemicals company, for many of the same reasons as discussed above for Corteva, Dow and DuPont. The bottom line is the prospects of the company are tied to global gross domestic product for which we have limited visibility today.”
