BofA’s Top 10 Growth Stocks with The Fastest Projected EPS Growth Rates

7. Dow Inc. (NYSE:DOW)

Number of Hedge Fund Holders In Q2 2024: 32

Projected EPS Growth Rate: 32.7%

Dow Inc. (NYSE:DOW) is a diversified chemical company that is one of the biggest of its kind in the world. The firm serves the needs of industrial, consumer goods, construction, and other industries. Its $43 billion in trailing twelve month revenue has enabled Dow Inc. (NYSE:DOW) to amass sizable resources, as evidenced by its cash and equivalents of $3.3 billion. Its exposure to construction, transportation, and other markets mean that Dow Inc. (NYSE:DOW) is sensitive to economic conditions, as it thrives when economic output is robust. As of H1 2024, 50.4% of Dow Inc. (NYSE:DOW)’s $21.7 billion in revenue came from its packaging and hydrocarbon business. Geographically, the firm has higher exposure to Western markets. $7 billion of its H1 revenue was from Europe where the prolonged economic slowdown has meant that Dow Inc. (NYSE:DOW) has struggled. The firm has also struggled in the US due to trouble at a plant in Texas–and summing it up–its fortune is tied closely to the resumption of economic activities.

Dow Inc. (NYSE:DOW)’s management shared its thoughts on the economy during the Q2 2024 earnings call:

“Moving to slide eight, our expectations for 2024 reflect a slower pace of recovery in certain end markets. Dow is positioned to capture more than $3 billion in EBITDA upside as we return to mid-cycle earnings levels. We are encouraged by the positive top line signals across our portfolio. This is demonstrated by our year-over-year volume improvement in the last three quarters, as well as price stabilization across the entire enterprise over that same period. In packaging especially plastics, we anticipate supply demand fundamentals to continue improving as the recent polyethylene capacity builds in North America have been fully absorbed by growing global demand. We’re also starting to see rationalization of higher cost assets, particularly in Europe.”