DuPont Stock Shows Mixed Results Amid Market Rally
Company Overview and Market Performance
Wilmington, Delaware-based DuPont de Nemours, Inc. (DD) specializes in technology-based materials and solutions. With a market capitalization of $34.2 billion, DuPont features a wide variety of products, including construction materials, adhesives, electronics, fabrics, fibers, home garden supplies, medical devices, resins, printing materials, and consumer products.
Stock Performance Lags Behind Peers
Over the past year, DuPont’s shares have significantly underperformed relative to the broader market. The stock has risen just 14.2%, while the S&P 500 Index ($SPX) has surged nearly 31.1% during the same period. In 2024, DuPont’s stock registered a gain of 5.8%, considerably lower than the SPX’s rise of 24.1% year to date (YTD).
Comparison with the Materials Sector
Focusing on sector performance, DuPont’s struggles become more evident when compared to the Materials Select Sector SPDR Fund (XLB), which has gained about 7.2% YTD. Notably, the ETF’s performance over the last 52 weeks aligns closely with DuPont’s stock returns.
Q3 Earnings Results Show Improvement
On November 5, shares of DuPont closed up more than 4% following the release of its Q3 financial results. The company reported net sales of $3.2 billion, marking a 4.4% year-over-year increase. Additionally, DuPont’s adjusted earnings per share (EPS) rose 28.3% year-over-year to $1.18. The company also raised its full-year adjusted EPS guidance to $3.90.
Analysts’ Outlook and Ratings
For the fiscal year ending in December, analysts project DuPont’s EPS to increase by 12.4% to $3.91 on a diluted basis. The company has an impressive history of earnings surprises, having exceeded consensus estimates in each of the last four quarters.
Among the 16 analysts following DuPont stock, the consensus rating is a “Moderate Buy.” This assessment includes nine “Strong Buy” ratings, one “Moderate Buy,” four “Holds,” one “Moderate Sell,” and one “Strong Sell.”
Price Targets and Analyst Ratings
On November 6, RBC Capital analyst Arun Viswanathan maintained a “Buy” rating for DuPont, setting a price target of $104. This target suggests a potential upside of 27.8% from the current price. The mean price target stands at $98.54, indicating a 21.1% premium over current levels. Meanwhile, the highest price target of $107 points to a substantial upside potential of 31.5%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
