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Here's Why You Should Add DuPont (DD) to Your Portfolio

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DuPont de Nemours, Inc.’s (DD - Free Report) shares have gained around 29% over the past six months. We are positive on the company’s prospects and believe that the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead.

Let’s take a look into the factors that make this Zacks Rank #2 (Buy) stock an attractive choice for investors right now.

An Outperformer

Shares of DuPont have rallied 68.5% over the past year against the 60.2% rise of its industry. It has also outperformed the S&P 500’s roughly 42% rise over the same period.

 

Estimates Going Up

Over the past two months, the Zacks Consensus Estimate for DuPont for the current year has increased around 7.2%. The consensus estimate for 2022 has also been revised 7.4% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.

Positive Earnings Surprise History

DuPont has outpaced the Zacks Consensus Estimate in four of the trailing four quarters. In this time frame, it has delivered an earnings surprise of 13.6%, on average.

Healthy Growth Prospects

The Zacks Consensus Estimate for earnings for 2021 for DuPont is currently pegged at $3.69, reflecting an expected year-over-year growth of 9.8%. Moreover, earnings are expected to register a 17.4% growth in 2022.

Growth Drivers in Place

DuPont is gaining from sustained strength in semiconductors and smartphone technologies, continued recovery in automotive and industrial markets and strong demand for water filtration technologies.

Moreover, the company remains focused on driving growth though innovation and new product development. Its innovation-driven investment is focused on several high-growth areas. It remains committed to drive returns from its R&D investment.

DuPont is also benefiting from cost synergy savings and productivity improvement actions. Its structural cost actions are contributing to its bottom line.

The company also remains focused on driving cash flow and shareholder value. It looks to boost cash flow through working capital productivity and earnings growth. The company returned $660 million to shareholders through share repurchases and dividends during the first quarter. It expects to return roughly $640 million in dividends this year.

 

 

Stocks to Consider

Other top-ranked stocks worth considering in the basic materials space include Nucor Corporation (NUE - Free Report) , Cabot Corporation (CBT - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .

Nucor has a projected earnings growth rate of 229.3% for the current year. The company’s shares have rallied around 132% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cabot has an expected earnings growth rate of around 126% for the current fiscal. The company’s shares have surged 64% in the past year. It currently sports a Zacks Rank #1.

Impala Platinum has an expected earnings growth rate of 225.2% for the current fiscal. The company’s shares have surged around 165% in the past year. It currently carries a Zacks Rank #2.

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