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DuPont de Nemours (DD) Gains But Lags Market: What You Should Know

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DuPont de Nemours (DD - Free Report) closed at $76.49 in the latest trading session, marking a +1.7% move from the prior day. This move lagged the S&P 500's daily gain of 1.78%. Meanwhile, the Dow gained 1.61%, and the Nasdaq, a tech-heavy index, added 0.95%.

Heading into today, shares of the specialty chemicals maker had lost 5.06% over the past month, lagging the Basic Materials sector's loss of 2.07% and the S&P 500's loss of 2.63% in that time.

Wall Street will be looking for positivity from DuPont de Nemours as it approaches its next earnings report date. On that day, DuPont de Nemours is projected to report earnings of $1.01 per share, which would represent year-over-year growth of 6.32%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4 billion, down 23.89% from the year-ago period.

DD's full-year Zacks Consensus Estimates are calling for earnings of $4.22 per share and revenue of $16.37 billion. These results would represent year-over-year changes of +25.6% and -19.75%, respectively.

Any recent changes to analyst estimates for DuPont de Nemours should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. DuPont de Nemours is currently a Zacks Rank #3 (Hold).

Investors should also note DuPont de Nemours's current valuation metrics, including its Forward P/E ratio of 17.84. For comparison, its industry has an average Forward P/E of 12.91, which means DuPont de Nemours is trading at a premium to the group.

Meanwhile, DD's PEG ratio is currently 1.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Chemical - Diversified stocks are, on average, holding a PEG ratio of 1.11 based on yesterday's closing prices.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% 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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