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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 $77.09, marking a +1.04% move from the previous day. This change outpaced the S&P 500's 0.51% gain on the day. Elsewhere, the Dow gained 0.44%, while the tech-heavy Nasdaq added 0.19%.

Prior to today's trading, shares of the specialty chemicals maker had gained 0.97% over the past month. This has lagged the Basic Materials sector's gain of 14.91% and the S&P 500's gain of 5.51% 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 $0.99 per share, which would represent year-over-year growth of 8.79%. Our most recent consensus estimate is calling for quarterly revenue of $4.26 billion, up 7.19% from the year-ago period.

DD's full-year Zacks Consensus Estimates are calling for earnings of $4.82 per share and revenue of $17.84 billion. These results would represent year-over-year changes of +12.09% and +7.1%, respectively.

Investors should also note any recent changes to analyst estimates for DuPont de Nemours. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.36% higher. DuPont de Nemours currently has 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 15.85 right now. For comparison, its industry has an average Forward P/E of 12.34, which means DuPont de Nemours is trading at a premium to the group.

We can also see that DD currently has a PEG ratio of 1.71. 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 0.94 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 174, which puts it in the bottom 32% 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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