• Earlier this week, Dow unveiled DOWSIL™ EG-4175 Silicone Gel, a high-reliability solution designed for advanced electric vehicle (EV) modules, photovoltaic inverters, and wind turbines, and, in partnership with Gruppo Fiori, announced progress in automotive polyurethane foam recycling technology that avoids disassembly of end-of-life vehicles.
• These innovations underscore Dow’s positioning in the shift toward sustainable mobility and renewable energy, as well as its growing capabilities in circular material solutions amid tightening environmental regulations.
• We'll assess how Dow's push into next-generation EV and renewable energy materials could influence its investment outlook.

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Dow Investment Narrative Recap

To own Dow stock, investors typically need to believe that the company’s leading materials science, focus on circularity, and track record in specialty chemicals position it to benefit from long-term global trends in electrification and sustainability. The latest product innovation and sustainability partnerships signal ongoing progress, but recent earnings disappointments and the dividend cut sharpen attention on near-term cash flow and margin risks. These developments call into question the pace and stability of any recovery catalyst for earnings or shareholder returns in the short term.

Among the recent updates, Dow’s partnership with Gruppo Fiori stands out as most connected to the catalyst of achieving cost savings and compliance with evolving regulations. By streamlining automotive polyurethane recycling without requiring vehicle disassembly, Dow could enhance operational efficiency and address cost challenges, while pursuing more sustainable manufacturing, a factor that has increasing weight in regulatory-driven markets and could influence the company's recovery efforts.

But while the company is advancing in new technologies, investors should also be aware of sudden shifts in cash conservation and the possible consequences for growth projects like Path2Zero…

Dow's narrative projects $43.7 billion revenue and $1.5 billion earnings by 2028. This requires 1.5% yearly revenue growth and a $2.5 billion increase in earnings from -$994 million.

Uncover how Dow's forecasts yield a $28.94 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Ten members of the Simply Wall St Community estimate Dow's fair value in a US$20 to US$56.49 range. While opinions vary widely, recent cost control moves amid weak margins could shape how you weigh the company's outlook.

Explore 10 other fair value estimates on Dow - why the stock might be worth 18% less than the current price!

Build Your Own Dow Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Dow research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Dow research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Dow's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.