Back to top

Image: Bigstock

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

Read MoreHide Full Article

DuPont de Nemours (DD - Free Report) closed the most recent trading day at $84.97, moving +1.14% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 4.81%.

Prior to today's trading, shares of the specialty chemicals maker had gained 11.06% over the past month. This has outpaced the Basic Materials sector's gain of 7.23% and the S&P 500's gain of 0.64% in that time.

Investors will be hoping for strength from DuPont de Nemours as it approaches its next earnings release. 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, our latest consensus estimate is calling for revenue of $3.97 billion, down 24.48% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for DuPont de Nemours. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.15% higher. DuPont de Nemours is currently a Zacks Rank #3 (Hold).

In terms of valuation, DuPont de Nemours is currently trading at a Forward P/E ratio of 17.47. This represents a premium compared to its industry's average Forward P/E of 13.28.

It is also worth noting that DD currently has a PEG ratio of 1.62. 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 1.22 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 105, which puts it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow DD in the coming trading sessions, be sure to utilize Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


DuPont de Nemours, Inc. (DD) - free report >>

Published in