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

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DuPont de Nemours (DD - Free Report) closed at $74.75 in the latest trading session, marking a +1.59% move from the prior day. This change outpaced the S&P 500's 0.34% gain on the day. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.47%.

Prior to today's trading, shares of the specialty chemicals maker had lost 4.3% over the past month. This has lagged the Basic Materials sector's gain of 9.09% and the S&P 500's gain of 3.75% in that time.

DuPont de Nemours will be looking to display strength as it nears its next earnings release. In that report, analysts expect DuPont de Nemours to post earnings of $0.99 per share. This would mark 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.

It is also important to note the recent changes to analyst estimates for DuPont de Nemours. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 2.92% 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 15.28 right now. For comparison, its industry has an average Forward P/E of 12.13, which means DuPont de Nemours is trading at a premium to the group.

Also, we should mention that DD has a PEG ratio of 1.65. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DD's industry had an average PEG ratio of 0.91 as of yesterday's close.

The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 29% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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