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DuPont de Nemours (DD) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, DuPont de Nemours (DD - Free Report) closed at $76.69, marking a +1.39% move from the previous day. This move outpaced the S&P 500's daily gain of 0.6%. At the same time, the Dow added 1.46%, and the tech-heavy Nasdaq lost 0.04%.

Prior to today's trading, shares of the specialty chemicals maker had gained 2.95% over the past month. This has lagged the Basic Materials sector's gain of 3.12% and outpaced the S&P 500's loss of 0.8% in that time.

Investors will be hoping for strength from DD as it approaches its next earnings release. On that day, DD is projected to report earnings of $0.77 per share, which would represent a year-over-year decline of 8.33%. Our most recent consensus estimate is calling for quarterly revenue of $3.82 billion, down 26.76% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.41 per share and revenue of $15.41 billion, which would represent changes of +1.49% and -24.45%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for DD. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 8.81% higher within the past month. DD is currently a Zacks Rank #3 (Hold).

In terms of valuation, DD is currently trading at a Forward P/E ratio of 22.21. For comparison, its industry has an average Forward P/E of 19.3, which means DD is trading at a premium to the group.

Meanwhile, DD's PEG ratio is currently 3.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DD's industry had an average PEG ratio of 1.59 as of yesterday's close.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 28% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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