Daily Stock Opinions and Ratings

Opinions

Jim Cramer - Mad MoneyDow Inc. (Formerly Dow Chemical) (DOW-N)DOWBUYJul 13, 2026

A major competitor is in the Gulf, where the US-Iran war is raging. This helps Dow, which uses domestic oil, so is not dependent on the Strait of Hormuz opening during this war.

Jim Cramer - Mad Money

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$30.37

Stock price when the opinion was issued

$30.37

As of Jul 13, 2026. Market Open.

chemicals

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COMMENT

Up 78% in Q1 and one of the best performers on the S&P. It started to rise early this year because the market expected many interest rate cuts this year. Then, it went up because of petrochemical shortages caused by the Iranian government. LYB is at a risk of a pullback before the war ends. Maybe, maybe not.

SELL ON STRENGTH

It still needs the Chinese buyers to come back. It's had a good run, up 43% over 3 months because people want to buy the cyclicals. Take profits.

WEAK BUY

Hope that it rises from the ashes as AT&T did?

Not sure it's going to rally the way AT&T did. Very different sectors. In his modelling, he's been in accumulation mode. Likes it at these levels on a risk/return basis, screens well for value. High yield is probably a risk factor at this point. Not a lot of upside potential to analysts' price target.

(Analysts’ price target is $32.00)

DON'T BUY

It's near-9% dividend yield is too big. Something is awry here.

DON'T BUY

Like the other chemical companies, DOW is trading as if they are just calls on China turning around. This is wrong to do.

DON'T BUY

It's broken. When a stock's broken support, you don't want to buy it.

DON'T BUY

It's tied to China, like all materials stocks are, and those stock keep going down. Don't touch this until at least January.

BUY ON WEAKNESS

Still sells at 20x PE. Estimates keep going down, because of China--stocks that have any association with China tend to hurt. That said, if this stock reaches a 7% dividend yield, you must buy.

BUY

The best time to buy this is right now, at the start of rate-cutting, which will boost housing and products associating with home-building like appliances and carpets which require chemicals. Also, China's stimulus is a boost to cyclicals levered to China's economy.

COMMENT

Shares popped last Friday on hopes that China's stimulus plans can boost Dow, a stock that has been slumping lately.

DON'T BUY

Chemical companies are industrials, and industrials do poorly during recessions. Shipments are down 14%, so earnings will struggle. 7x earnings. Dividend hasn't grown in last 5 years, so higher inflation wipes out your income. Yield is unattractive at 5.6%, which is only high because stock price has come down. Instead, he owns DHR and TMO.

WATCH

It reports Thursday. Plastics and copper are directly tied to economic growth. Listen to the quarterly call for their progress to gain clues about the economy.

BUY ON WEAKNESS

We'll be in a trading range in the short term at least. The Fed is so behind the inflation curve; inflation so high. Can the Fed engineer a soft landing? Even 7 rate hikes won't cure inflation. We need to fix supply chains. On the positive side, she always felt 2022 growth will be slower than 2021, because fiscal supports have ended. Housing is still strong. Banks are lending, and consumers have historically high amounts of cash to spend. She is adding during this weakness to Dow Chemicals and American Express for example. Look for solid fundamdentals.

PAST TOP PICK

(A Top Pick Jun 26/19, Down 15%) He sold. He liked only a part of the new proposed Dow.

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