Materials Sector Shows Signs of Recovery
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 02 2026
0mins
Should l Buy DOW?
Source: CNBC
- Strong Sector Recovery: The S&P 500 Materials Index gained 8.64% in January, indicating improved long-term momentum for the sector both absolutely and relative to the S&P 500 Index, which may attract more investor interest.
- Potential Turnaround for DOW: Dow Inc. (DOW) found support near the long-term low of $22 in the second half of 2025, suggesting a potential turnaround as the stock appears to have established a major low.
- Improving Technical Indicators: DOW broke above its 200-day moving average in mid-January and entered the weekly cloud, indicating a bullish trend that suggests upside follow-through over the next 2-3 months.
- Risk Management Advice: Given the higher risk nature of turnaround opportunities, investors are advised to implement stop-loss strategies, with a recommendation to reduce exposure if consecutive daily closes fall below $25.50 to protect investments.
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Analyst Views on DOW
Wall Street analysts forecast DOW stock price to fall
15 Analyst Rating
1 Buy
13 Hold
1 Sell
Hold
Current: 32.650
Low
20.00
Averages
25.71
High
32.00
Current: 32.650
Low
20.00
Averages
25.71
High
32.00
About DOW
Dow Inc. serves as a holding company for The Dow Chemical Company and its subsidiaries. The Company conducts its operations through six global businesses, which are organized into segments, such as Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure and Performance Materials & Coatings. Packaging & Specialty Plastics segment consists of two integrated global businesses: Hydrocarbons & Energy and Packaging and Specialty Plastics. This segment employs a polyolefin product portfolio. Industrial Intermediates & Infrastructure segment consists of two customer-centric global businesses: Industrial Solutions and Polyurethanes & Construction Chemicals that develop intermediate chemicals that are essential to manufacturing processes, as well as downstream, customized materials and formulations that use advanced development technologies. Performance Materials & Coatings segment consists of two global businesses: Coatings & Performance Monomers and Consumer Solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Position: As a leading materials science company, Dow serves high-growth markets such as packaging, infrastructure, mobility, and consumer applications, with approximately $40 billion in sales for 2025, reflecting its strong influence and market share across multiple industries.
- Global Operations: Dow operates manufacturing sites in 29 countries and employs around 34,600 people, which not only enhances the company's production capacity but also strengthens its competitive edge in international markets.
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- Restructuring Plan Impact: Dow's launch of the “Transform to Outperform” initiative on January 29 involves cutting 4,500 jobs, targeting $2 billion in near-term EBITDA gains, and embedding AI across production and supply chains, aimed at navigating a tougher chemicals cycle.
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