Dow Chemicals Stock Forecast (DOW): A Stable Long-Term Investment

Dow Chemicals Stock Forecast

I Know First supplies financial services, mainly through stock forecasts via their predictive algorithm. The algorithm incorporates a 15-year database, and utilizes it to predict the flow of money across 2000 markets. The self-learning algorithm uses artificial intelligence, predictive models based on artificial neural networks, and genetic algorithms to predict money movements within various markets.

The algorithm produces a forecast with a signal and a predictability indicator. The signal is the number in the middle of the box. The predictability is the number at the bottom of the box. At the top, a specific asset is identified. This format is consistent across all predictions. The middle number is indicative of strength and direction, not a price target. The bottom number, the predictability, signifies a confidence level.

Recently, I Know First published on Seeking Alpha a bullish article about Dow Chemicals Co. (NYSE:DOW); Dow Chemical Company (NYSE:DOW) is a diversified chemical company that provides chemical, plastic, agricultural products and services to various essential consumer markets around the world in businesses such as food, transportation, health, medicine, personal care and construction.

Having explained how I Know First’s algorithm works, it is worthwhile to see if the algorithm agrees with the bullish fundamental analysis of the company. The three-month and one-year forecasts for Dow Chemicals Co. are included below.

Dow Chemicals Stock Forecast

 

The Dow Chemical Company is not going to be a high-growth company, but with a focus on strong returns from the markets where it has a competitive advantage, the company can carry on growing earnings steadily over time. Dow’s ability to maintain profitability and growth rates on a regular basis is ideal for investors looking for a flexible company with responsible management that has fantastic growth prospects.

Positive signal strength does not mean investors should automatically buy the stock. Dr. Roitman, who created the algorithm, created rules for entry for a stock such as Alcoa Inc. Using this trading strategy, an investor should buy a stock if the last 5 day signal strength’s average is positive and if the last closing price is above the 5-day moving average price. When both of these conditions are met, it is a good time to initiate a position in the stock.