Dow Stock Surges on $500M Working Capital Release Plan

Dow Inc., trading under the ticker DOW on the NYSE, saw its stock gain modestly after management discussed a planned net working capital release of more than $500 million in the second half of 2026 at a Morgan Stanley investor conference. The company's leadership also provided an updated third-quarter EBITDA outlook, expecting it to fall within the range of $1.5 billion to $1.6 billion.

This guidance reshaped expectations for investors, who now anticipate Dow will generate more than $500 million in net working capital release during the second half of 2026. According to GuruFocus, this would provide additional flexibility for Dow to reduce leverage and support its dividend policy.

Alongside the updated guidance, valuation metrics highlighted that the market is currently discounting Dow's earnings power. As of mid-September 2026, Dow's Price-to-Sales ratio stood at about 0.5 times, materially below its historical median of roughly 0.8 times. GuruFocus estimated Dow's intrinsic value at $38.48 per share, suggesting the stock is modestly undervalued by approximately 22.6 percent relative to a contemporaneous market price of $29.78.