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

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In the latest trading session, DuPont de Nemours (DD - Free Report) closed at $58.03, marking a +1.34% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.13%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.04%.

Prior to today's trading, shares of the specialty chemicals maker had lost 2.2% over the past month. This has was narrower than the Basic Materials sector's loss of 9.11% and lagged the S&P 500's gain of 5.55% in that time.

Wall Street will be looking for positivity from DuPont de Nemours as it approaches its next earnings report date. This is expected to be August 2, 2022. The company is expected to report EPS of $0.74, down 30.19% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.27 billion, down 21.04% from the prior-year quarter.

DD's full-year Zacks Consensus Estimates are calling for earnings of $3.34 per share and revenue of $13.46 billion. These results would represent year-over-year changes of -22.33% and -19.16%, respectively.

Investors might also notice recent changes to analyst estimates for DuPont de Nemours. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.39% lower. DuPont de Nemours is holding a Zacks Rank of #5 (Strong Sell) right now.

Investors should also note DuPont de Nemours's current valuation metrics, including its Forward P/E ratio of 17.12. This represents a premium compared to its industry's average Forward P/E of 9.51.

Investors should also note that DD has a PEG ratio of 1.85 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DD's industry had an average PEG ratio of 1.22 as of yesterday's close.

The Chemical - Diversified industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 203, which puts it in the bottom 20% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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