Key Takeaways
- Dupont stock has risen 18.5% this year, compared to the 6.2% rise of the entire diversified chemicals industry.
- The purchase of specialty medical devices company Spectrum Plastics Group has been a boon to DD's share price.
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DuPont de Nemours, Inc. DD is well-placed to gain from its innovation-driven investment, productivity actions and the acquisitions of the Spectrum Plastics Group and Donatelle Plastics.
We are positive about DD’s prospects and believe that the time is right for you to add the stock to the portfolio as it looks promising and is poised to carry the momentum ahead.
Let's see what makes DD stock an attractive investment option at the moment.
DuPont Stock Outperforms Industry
DD has outperformed the Zacks Chemicals Diversified industry over the past year. The company’s shares have rallied 18.5% compared with a 6.2% rise of its industry.
Image Source: Zacks Investment Research
DD’s Earnings Estimates Northbound
Earnings estimates for DD have been going up over the past 60 days. The Zacks Consensus Estimate for 2024 has increased by 3.7%. The consensus estimate for 2025 has also been revised 2.1% upward over the same time frame. The favorable estimate revisions instill investor confidence in the stock.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
DD’s Impressive Earnings Surprise History
DuPont has outpaced the Zacks Consensus Estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 12.9%, on average.
Productivity, Innovation & Acquisition Aid DuPont Stock
DuPont remains focused on driving growth through innovation and new product development. Its innovation-driven investment is focused on several high-growth areas. DD remains committed to driving returns from its R&D investment.
The company, in August 2023, completed the buyout of leading manufacturer of specialty medical devices and components, Spectrum Plastics Group from AEA Investors for $1.75 billion. The acquisition strengthens DuPont’s existing position in stable and fast-growing healthcare end markets. It is also in sync with its focus on high-growth, customer-driven innovation for the healthcare market.
The buyout of Donatelle Plastics also enhances DD’s exposure in healthcare, expanding its expertise in the medical device market segments. The acquisition introduces complementary advanced technologies and capabilities, such as medical device injection molding, liquid silicone rubber processing, precision machining, device assembly and tool building.
DuPont is also benefiting from cost synergy savings and productivity improvement actions. The benefits of its structural cost actions are expected to be realized in 2024. DD also continues to implement strategic price increases in the wake of cost inflation. These actions are likely to support its results. DuPont is also executing additional restructuring actions and expects annualized cost savings of $150 million from these measures with about $115 million anticipated in 2024.
DuPont, in May 2024, announced a strategic plan to separate into three distinct, publicly traded companies to unlock value for shareholders and enhance operational focus. The proposed separations of the Electronics and Water businesses will be executed in a tax-free manner for DuPont shareholders, resulting in New DuPont, Electronics and Water as independent entities. Each company will benefit from increased agility and focus within their respective industries while maintaining strong balance sheets and attractive financial profiles. All three resulting companies are anticipated to have strong balance sheets and sufficient capitalization to pursue future growth opportunities.
DuPont de Nemours, Inc. Price and Consensus
DuPont de Nemours, Inc. price-consensus-chart | DuPont de Nemours, Inc. Quote
DD’s Zacks Rank & Other Key Picks
DD currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the Basic Materials space are Methanex Corporation MEOH, Axalta Coating Systems Ltd. AXTA and Ingevity Corporation NGVT, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Methanex’s current-year earnings has increased by 20.7% in the past 60 days. MEOH beat the consensus estimate in each of the last four quarters with the average surprise being 111%. Its shares have gained roughly 12% in the past year.
The Zacks Consensus Estimate for Axalta Coating’s current year earnings is pegged at $2.15, indicating a rise of 36.9% from year-ago levels. The Zacks Consensus Estimate for AXTA’s current year earnings has increased 3.9% in the past 60 days. The stock has rallied around 33% in the past year.
Ingevity beat the consensus estimate in three of the last four quarters while missed once. In this timeframe, it delivered an earnings surprise of 95.4%, on average. NGVT’s shares have gained roughly 30% in the past year.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>DuPont de Nemours, Inc. (DD) : Free Stock Analysis Report
Methanex Corporation (MEOH) : Free Stock Analysis Report
Axalta Coating Systems Ltd. (AXTA) : Free Stock Analysis Report
Ingevity Corporation (NGVT) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
