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DuPont (DD) Rides on Strong End-Market Demand and Innovation

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DuPont de Nemours, Inc. (DD - Free Report) is benefiting from strong end-market demand, productivity actions and innovation-driven investment.

The company’s shares have popped around 36.2% over the past six months, outperforming its industry’s rise of 22.2% over the same time frame.

 

Zacks Investment Research
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DuPont, a Zacks Rank #1 (Strong Buy) stock, is gaining from strong underlying demand in its major end-markets, especially semiconductor, water and general industrial, which is driving its top line. Its volumes rose in the third quarter of 2022 on strong demand in semiconductor, water and industrial end-markets. DuPont envisions demand to remain strong in most end-markets, notably water, industrial and auto adhesives in the fourth quarter, offset by continued weakness in consumer electronics globally

The company also continues to implement strategic price increases in the wake of raw material and energy cost inflation. These actions are likely to support its results in the fourth quarter.

DuPont also remains focused on driving growth though innovation and new product development. Its innovation-driven investment is focused on several high-growth areas. It remains committed to drive returns from its R&D investment. It is also benefiting from cost synergy savings and productivity improvement actions. Its structural cost actions are contributing to its bottom line.

The company is also managing its portfolio with an aim for value creation. It is divesting non-core assets to focus more on high-growth, high-margin businesses. DuPont completed the divestment of the majority of its Mobility & Materials unit to Celanese on Nov 1, 2022 as part of its ongoing transformation. The company received $11 billion in gross cash from the transaction. The move is expected to boost its underlying performance, strengthen its balance sheet, maximize shareholders’ return and provide opportunities to grow business through targeted mergers and acquisitions.

 

 

Stocks to Consider

Other top-ranked stocks worth considering in the basic materials space include Olympic Steel, Inc. (ZEUS - Free Report) , Commercial Metals Company (CMC - Free Report) and Nucor Corporation (NUE - Free Report) .

Olympic Steel currently sports a Zacks Rank #1. The Zacks Consensus Estimate for ZEUS's current-year earnings has been revised 4.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Olympic Steel’s earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 25.4%, on average. ZEUS has rallied around 50% in a year.

Commercial Metals currently carries a Zacks Rank #1. The consensus estimate for CMC's current-year earnings has been revised 10.2% upward in the past 60 days.

Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 16.7%, on average. CMC has gained around 61% in a year.

Nucor currently carries a Zacks Rank #1. The company has a projected earnings growth rate of 21.5% for the current year.

Nucor’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 3.9%, on average.  NUE has rallied roughly 42% in a year.

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