|dow inc stock price now||1.36||0.8||7365||31|
The U.S. stock market is still wildly overvalued, according to Warren Buffett’s favorite indicator. After a strong relief rally, which saw the Dow Jones Industrial Average (DJIA) bounce 30% off March’s bottom, some analysts warn we’re due another reversal. The so-called Buffett indicator is often used to identify frothy market conditions.What does Dow say about the stock market in general?
While the Dow tracks only 30 large American companies, these companies are inclusive of all industries except utilities and transportation, creating a broad overview of the economy. In general, the stock market is a leading indicator, and the trend of the Dow could be construed as representing the trend of the economy over the next year.Should I buy Dow Inc. (Dow)?
Investors should also note Dow Inc.'s current valuation metrics, including its Forward P/E ratio of 8.75. Its industry sports an average Forward P/E of 12.12, so we one might conclude that Dow Inc. is trading at a discount comparatively. Investors should also note that DOW has a PEG ratio of 0.29 right now.Is Dow Inc. a buy?
The Dow Inc. stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $62.48 and $61.43. A breakdown below any of these levels will issue sell signals.