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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 the most recent trading day at $76.60, moving +0.7% from the previous trading session. This move lagged the S&P 500's daily gain of 1.89%. Meanwhile, the Dow gained 1.17%, and the Nasdaq, a tech-heavy index, added 0.75%.

Heading into today, shares of the specialty chemicals maker had lost 5.83% over the past month, lagging the Basic Materials sector's loss of 4% and outpacing the S&P 500's loss of 7.36% in that time.

Wall Street will be looking for positivity from DuPont de Nemours as it approaches its next earnings report date. This is expected to be February 8, 2022. The company is expected to report EPS of $1.01, up 6.32% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.97 billion, down 24.48% from the year-ago period.

Any recent changes to analyst estimates for DuPont de Nemours should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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

Valuation is also important, so investors should note that DuPont de Nemours has a Forward P/E ratio of 15.64 right now. Its industry sports an average Forward P/E of 12.31, so we one might conclude that DuPont de Nemours is trading at a premium comparatively.

It is also worth noting that DD currently has a PEG ratio of 1.45. 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 1.09 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 100, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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