Wilmington, Delaware-based DuPont de Nemours, Inc. (DD) provides technology-based materials and solutions. With a market cap of $34.2 billion, the company offers a diverse range of products, such as construction materials, adhesives, electronic, fabrics, fibers, home garden, medical devices, resins, printing, and consumer products.
Shares of this chemical giant have underperformed the broader market considerably over the past year. DD has gained 14.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31.1%. In 2024, DD’s stock rose 5.8%, compared to the SPX’s 24.1% rise on a YTD basis.
Narrowing the focus, DD’s underperformance is apparent compared to the Materials Select Sector SPDR Fund (XLB). The exchange-traded fund has gained about 7.2% on a YTD basis. Moreover, the ETF’s gains over the past 52 weeks match the stock’s returns over the same time frame.
On Nov. 5, DD shares closed up more than 4% after reporting its Q3 results. Its net sales stood at $3.2 billion, up 4.4% year over year. The company’s adjusted EPS increased 28.3% year over year to $1.18. DD boosted its guidance on its full-year adjusted EPS to $3.90.
For the current fiscal year, ending in December, analysts expect DD’s EPS to grow 12.4% to $3.91 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 16 analysts covering DD stock, the consensus is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” four “Holds,” one “Moderate Sell,” and one “Strong Sell.”
The configuration has been fairly stable over the past three months.
On Nov. 6, RBC Capital analyst Arun Viswanathan maintained a “Buy” rating on DD with a price target of $104, implying a potential upside of 27.8% from current levels.
The mean price target of $98.54 represents a 21.1% premium to DD’s current price levels. The Street-high price target of $107 suggests an ambitious upside potential of 31.5%.
