Dow Inc. Unveils Transformation Plan Amid Financial Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 29 2026
0mins
Should l Buy DOW?
Source: PRnewswire
Dow Inc. saw its stock rise by 5.01% and reached a 5-day high amid positive market conditions, with the Nasdaq-100 up 0.87% and the S&P 500 up 0.64%.
The company announced a comprehensive transformation plan aimed at boosting operational EBITDA by at least $2 billion, despite reporting significant losses of $1.477 billion in Q4 2025. The plan includes one-time costs of approximately $1.1 to $1.5 billion, including severance for around 4,500 roles, indicating a commitment to long-term growth despite short-term financial pressures.
This strategic initiative is expected to enhance Dow's competitive position in the market, leveraging AI and automation for productivity improvements. The market's positive sentiment towards the materials sector, which gained 8.64% in January, may also contribute to Dow's stock performance.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy DOW?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on DOW
Wall Street analysts forecast DOW stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DOW is 25.71 USD with a low forecast of 20.00 USD and a high forecast of 32.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
1 Buy
13 Hold
1 Sell
Hold
Current: 30.600
Low
20.00
Averages
25.71
High
32.00
Current: 30.600
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.
AI-Exposed Stocks Face Challenges Amid Market Shift
- Market Sentiment Shift: As fears grow that artificial intelligence could disrupt demand rather than enhance it, software and AI-exposed stocks have faced significant sell-offs at the start of 2023, particularly in February, leading investors to reassess their risk exposure.
- Capital Flow Changes: Goldman Sachs equity strategist Ben Snider indicates that capital is rotating towards sectors perceived as insulated from AI disruption, marking a clear departure from last year's market strategies and reflecting diminished investor confidence in AI themes.
- Cyclical Industry Rally: Despite software stocks experiencing one of their worst weeks since the 2022 rate-hike panic, cyclical and consumer-linked industries have continued their recent rallies, indicating a growing preference for traditional sectors among investors.
- Strong Dow Jones Performance: Amid the decline in software stocks, the Dow Jones Industrial Average has rallied towards all-time highs, suggesting increased investor confidence in industries tied to physical assets and cyclical activity, further emphasizing the market's demand for safety from AI-driven productivity risks.
See More
Dow Jones Index Surpasses 50,000 for the First Time
- Historic Milestone: The Dow Jones Industrial Average surpassed 50,000 for the first time in 2026, marking a significant achievement since its inception in 1896, reflecting sustained investor confidence amid economic fluctuations.
- Tech Stock Influence: This milestone was largely driven by strong performances from technology stocks, particularly Nvidia's replacement of Intel, highlighting the market's heightened focus and investment enthusiasm in the artificial intelligence sector.
- Market Rebound: Following a downturn in 2022, the Dow rebounded nearly 13% in 2023, with this breakthrough occurring against the backdrop of the index climbing over 1,100 points, demonstrating a robust market recovery.
- Changing Economic Landscape: Despite concerns over Trump's tariff policies and the impact of AI spending, the market has shown resilience, indicating investor optimism regarding future economic growth.
See More
"Transportation Stocks Surge, Triggering Buy Signal from 'Dow Theory'"
- Transportation Shares Movement: Recent activity in transportation stocks indicates potential for continued stock market rally despite recent downturns.
- Market Resilience: The resilience of transportation shares suggests that investor confidence may remain strong, supporting overall market performance.
- Stock Market Dynamics: The interplay between transportation stocks and broader market trends highlights the importance of sector performance in stock market recovery.
- Investor Sentiment: Positive movements in specific sectors like transportation can influence overall investor sentiment and market outlook.
See More
Valmet to Supply Solutions for Dow's Path2Zero Project
- Partnership Announcement: Valmet has partnered with Dow to provide turnkey process analytical solutions for the Path2Zero project at Fort Saskatchewan, Alberta, marking a significant step in their collaboration towards sustainability.
- Industry Benchmark: The Path2Zero project aims to establish the world's first net-zero Scope 1 and 2 emissions integrated ethylene cracker and derivatives complex, pushing the industry towards a low-carbon future and enhancing Valmet's competitive edge.
- Technological Edge: Valmet will deliver advanced analytical solutions based on MAXUM II Gas Chromatographs, optimizing plant efficiency, quality, and safety, thereby supporting Dow's decarbonization efforts and solidifying Valmet's leadership in automation solutions.
- Future Deliverables: Engineering deliverables are underway, with system deliveries expected in 2027 and 2028, showcasing Valmet's capability to meet complex analytical needs and supporting the growth of its global automation products and integration business.
See More
Valmet to Supply Solutions for Dow's Path2Zero Project
- Project Background: Valmet has partnered with Dow to supply turnkey process analytical solutions for its Path2Zero project at the Fort Saskatchewan site in Alberta, Canada, aiming to create the world's first net-zero emissions integrated ethylene cracker and derivatives complex, setting a new industry benchmark.
- Technological Advantage: Valmet will provide advanced analytical solutions based on MAXUM II Gas Chromatographs, which will help optimize plant efficiency, quality, and safety, thereby supporting Dow's decarbonization efforts and advancing sustainability goals.
- Strategic Significance: This order not only showcases Valmet's capability to meet complex analytical needs but also highlights the growth of its Analyzer Products & Integration business, aiding the company's expansion in the global automation sector beyond its traditional biomaterials business.
- Delivery Timeline: While the specific value of the orders remains undisclosed, system deliveries are scheduled for 2027 and 2028, with Valmet providing a comprehensive solution that includes gas chromatographs, third-party analyzers, sample systems, and more to ensure successful project execution.
See More
VALMET WILL NOT REVEAL THE VALUE OF P2Z ORDERS
- Valmet Value of P2 Orders: The value of P2 orders at Valmet will not be disclosed publicly.
- Confidentiality of Orders: The decision to keep the order values confidential suggests a strategic approach to business operations.
See More
AI-Exposed Stocks Face Challenges Amid Market Shift
- Market Sentiment Shift: As fears grow that artificial intelligence could disrupt demand rather than enhance it, software and AI-exposed stocks have faced significant sell-offs at the start of 2023, particularly in February, leading investors to reassess their risk exposure.
- Capital Flow Changes: Goldman Sachs equity strategist Ben Snider indicates that capital is rotating towards sectors perceived as insulated from AI disruption, marking a clear departure from last year's market strategies and reflecting diminished investor confidence in AI themes.
- Cyclical Industry Rally: Despite software stocks experiencing one of their worst weeks since the 2022 rate-hike panic, cyclical and consumer-linked industries have continued their recent rallies, indicating a growing preference for traditional sectors among investors.
- Strong Dow Jones Performance: Amid the decline in software stocks, the Dow Jones Industrial Average has rallied towards all-time highs, suggesting increased investor confidence in industries tied to physical assets and cyclical activity, further emphasizing the market's demand for safety from AI-driven productivity risks.
See More
Dow Jones Index Surpasses 50,000 for the First Time
- Historic Milestone: The Dow Jones Industrial Average surpassed 50,000 for the first time in 2026, marking a significant achievement since its inception in 1896, reflecting sustained investor confidence amid economic fluctuations.
- Tech Stock Influence: This milestone was largely driven by strong performances from technology stocks, particularly Nvidia's replacement of Intel, highlighting the market's heightened focus and investment enthusiasm in the artificial intelligence sector.
- Market Rebound: Following a downturn in 2022, the Dow rebounded nearly 13% in 2023, with this breakthrough occurring against the backdrop of the index climbing over 1,100 points, demonstrating a robust market recovery.
- Changing Economic Landscape: Despite concerns over Trump's tariff policies and the impact of AI spending, the market has shown resilience, indicating investor optimism regarding future economic growth.
See More
"Transportation Stocks Surge, Triggering Buy Signal from 'Dow Theory'"
- Transportation Shares Movement: Recent activity in transportation stocks indicates potential for continued stock market rally despite recent downturns.
- Market Resilience: The resilience of transportation shares suggests that investor confidence may remain strong, supporting overall market performance.
- Stock Market Dynamics: The interplay between transportation stocks and broader market trends highlights the importance of sector performance in stock market recovery.
- Investor Sentiment: Positive movements in specific sectors like transportation can influence overall investor sentiment and market outlook.
See More
Valmet to Supply Solutions for Dow's Path2Zero Project
- Partnership Announcement: Valmet has partnered with Dow to provide turnkey process analytical solutions for the Path2Zero project at Fort Saskatchewan, Alberta, marking a significant step in their collaboration towards sustainability.
- Industry Benchmark: The Path2Zero project aims to establish the world's first net-zero Scope 1 and 2 emissions integrated ethylene cracker and derivatives complex, pushing the industry towards a low-carbon future and enhancing Valmet's competitive edge.
- Technological Edge: Valmet will deliver advanced analytical solutions based on MAXUM II Gas Chromatographs, optimizing plant efficiency, quality, and safety, thereby supporting Dow's decarbonization efforts and solidifying Valmet's leadership in automation solutions.
- Future Deliverables: Engineering deliverables are underway, with system deliveries expected in 2027 and 2028, showcasing Valmet's capability to meet complex analytical needs and supporting the growth of its global automation products and integration business.
See More
Valmet to Supply Solutions for Dow's Path2Zero Project
- Project Background: Valmet has partnered with Dow to supply turnkey process analytical solutions for its Path2Zero project at the Fort Saskatchewan site in Alberta, Canada, aiming to create the world's first net-zero emissions integrated ethylene cracker and derivatives complex, setting a new industry benchmark.
- Technological Advantage: Valmet will provide advanced analytical solutions based on MAXUM II Gas Chromatographs, which will help optimize plant efficiency, quality, and safety, thereby supporting Dow's decarbonization efforts and advancing sustainability goals.
- Strategic Significance: This order not only showcases Valmet's capability to meet complex analytical needs but also highlights the growth of its Analyzer Products & Integration business, aiding the company's expansion in the global automation sector beyond its traditional biomaterials business.
- Delivery Timeline: While the specific value of the orders remains undisclosed, system deliveries are scheduled for 2027 and 2028, with Valmet providing a comprehensive solution that includes gas chromatographs, third-party analyzers, sample systems, and more to ensure successful project execution.
See More
VALMET WILL NOT REVEAL THE VALUE OF P2Z ORDERS
- Valmet Value of P2 Orders: The value of P2 orders at Valmet will not be disclosed publicly.
- Confidentiality of Orders: The decision to keep the order values confidential suggests a strategic approach to business operations.
See More
