12 Oversold Value Stocks to Buy According to Hedge Funds

6. Dow Inc. (NYSE:DOW)

Number of Hedge Fund Holders: 48

​Dow Inc. (NYSE:DOW) is a global materials science company that manufactures and supplies chemicals, plastics, and specialty materials across a broad range of industries. Its operations are organized into three segments: Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings. DOW’s products are used in applications such as packaging, construction, automotive, electronics, and consumer goods. The company leverages its global production footprint and integration with upstream feedstocks to deliver scale and efficiency. DOW ranked eighth on our recent list of 10 Large-Cap Stocks with Insider Buying in 2025.

Dow Inc. (NYSE:DOW) continues to emphasize its commitment to financial discipline and maintains a strong financial foundation with priorities focused on safety, reliability, and industry-leading dividends. The company is implementing significant cost reduction measures, including a $1 billion cost action program targeting productivity improvements and approximately 1,500 role reductions, expected to deliver $300 million in benefits in 2025. This builds on its 2023 $1 billion cost reduction program, resulting in a combined workforce reduction of nearly 10% compared to year-end 2022. The company has secured significant cash flow opportunities, including a NOVA judgment that is expected to exceed their prior $500 million expectation and will be a 2025 cash flow item.

Additionally, Dow Inc. (NYSE:DOW) has signed an agreement with Macquarie Asset Management for the sale of a minority stake in US Gulf Coast infrastructure assets, expected to generate approximately $2.4 billion in initial cash proceeds, with the potential to increase to $3 billion. The company is facing ongoing macro challenges, including soft demand, with global manufacturing PMI remaining around 50 and housing markets disappointing in both the US and China. In response to European market challenges, where volumes are 20% below pre-COVID levels and energy costs are 4-5x higher than the US, DOW is conducting strategic reviews of its European assets, particularly in commoditized and energy-intensive operations. The Path2Zero project in Alberta remains on track and on budget, expected to deliver $1 billion in incremental EBITDA annually at full run rates, with over $1.5 billion in cash and tax incentives from government support. With a forward P/E of 14.22, DOW is one of the oversold stocks to buy according to hedge funds.