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    Dow (DOW) Expands Polymer Distribution Reach, Is The Stock Still A Bargain?

    Simply Wall St·09/18/2026 14:26:04
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    Univar Solutions USA LLC has expanded its agreement with Dow (DOW) to distribute SupraCare polymers and specialty additives for homecare and industrial cleaning customers across the United States and Canada, widening access to these formulation ingredients.

    Set against that commercial update, Dow’s recent trading has softened in the short term, with the 30 day share price return down 5.45% and the 90 day share price return down 7.06%. This is occurring even though the year to date share price return is 21.51% and the 1 year total shareholder return sits at 28.35%, while the 3 and 5 year total shareholder returns remain meaningfully negative. This combination points to positive momentum building off a much weaker longer term base.

    Spot 29 high quality undervalued stocks that, like Dow, combine established scale with pricing power and could be setting up for the next phase of their recovery story.

    Dow trades at US$29.49 while analyst targets and intrinsic estimates cluster materially higher, leaving a wide gap. Is that discount justified by past stumbles, or does it exaggerate the recent recovery in sentiment and cash flow expectations?

    Most Popular Narrative: 15% Undervalued

    On the most followed view, Dow screens as materially cheap, with a fair value of $34.69 against the last close at $29.49. This puts the spotlight squarely on how the business manages cash flow and spending over the next few years.

    Dow is delaying construction on the Path2Zero project in Fort Saskatchewan, which aligns with their strategy to adjust capital spending in response to market conditions, potentially improving near-term cash flow and margins due to reduced CapEx. The company is expanding their strategic review of European assets, planning to idle or shut down three initial assets. This move aims to optimize asset utilization and enhance near-term cash flow, potentially improving earnings by reducing excess capacity and focusing on higher-margin operations.

    See why 88 investors see Dow as 15% undervalued.

    Result: Fair Value of $34.69 (UNDERVALUED)

    Still, the Dow narrative can be knocked off course if elevated feedstock and energy costs keep pressuring margins, or if weaker global demand undercuts those cash flow improvements.

    Find out about the key risks to this Dow narrative.

    Next Steps

    If this mix of pressure and potential around Dow leaves you unsure, act quickly to conduct your own research and consider both sides. Begin by reviewing the 3 key rewards and 2 important warning signs.

    Looking for more Dow investment ideas?

    If Dow has your attention, do not stop there. Use the Simply Wall Street Screener to identify additional candidates before the market moves without you.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.