Blue Chip Stock Moves Lower on Downgrade

Year-over-year, DOW is already down over 19%

Digital Content Manager
Aug 29, 2022 at 10:23 AM
facebook X logo linkedin

Dow Inc (NYSE:DOW) received a downgrade from Keybanc to "underweight" from "sector weight" this morning, with the brokerage expecting continued downside in U.S. polyethylene (PE) prices. The analyst in question also noted the blue chip concern's margins and earnings could near recession levels. At last check, DOW is down 1.6% to trade at $53.58.

Keybanc is echoing a bearish bunch. Coming into today, eight of 11 analysts in question called DOW a tepid "hold" or worse. More bear notes could be in the cards, too, considering the equity's 12-month consensus price target of $59 is an area not traded at since June and a 10% premium to DOW's current perch.

Today's bear gap has the shares dipping below the $54 level, which had been a floor in recent weeks. The security's $56 level -- an area that was support for the first three months of 2022 -- was a stiff ceiling in the last two weeks. Longer term, the security sports 19.1% year-over-year deficit. 

Options traders are loading up on bearish bets. The security's Schaeffer's put/call volume ratio (SOIR) sits at 0.91 and ranks in the elevated 89th percentile of the last 12 months, meaning short-term options traders have rarely been more put-biased. 



How to collect 1 dividend check every day for LIFE

Did you know you could collect 1 dividend check every day the market is open? You could also do it starting with just $605! For me, I'm collecting 70 dividend checks every quarter…which averages around 1.1 dividend checks every business day. There's no trading behind this... no penny stocks or high-risk investments. All you do is buy and hold and you're set. There's no set up required either. If you start buying the dividend stocks I show you today... you could collect 1 dividend per day starting as early as this week. Click here for all the details.