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Here's Why You Should Add DuPont (DD) to Your Portfolio Now
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Shares of DuPont de Nemours, Inc. (DD - Free Report) have popped around 33% over the past three months. It is benefiting from strong end-market demand, productivity actions and innovation-driven investment.
We are positive on the company’s prospects and believe that the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead.
Let’s take a look into the factors that make this Zacks Rank #2 (Buy) stock an attractive choice for investors right now.
Healthy Growth Prospects
The Zacks Consensus Estimate for earnings for 2023 for DuPont is currently pegged at $3.80, implying an expected year-over-year growth of around 14.7%. The company also has an expected long-term earnings per share growth rate of 8%.
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 12.4%, on average.
Capital Allocation
The company remains focused on driving cash flow and shareholder value. It looks to boost cash flow through working capital productivity and earnings growth. DuPont returned $1,625 million to shareholders through share repurchases and dividends during the first nine months of 2022, including $415 million in the third quarter. It expects to return roughly $670 million in dividends for full-year 2022. DuPont's board, on Nov 7, 2022, also approved a new share buyback program authorizing the repurchase of up to $5 billion of common stock.
Growth Drivers in Place
DuPont is gaining from strong underlying demand in its major end-markets, especially semiconductor, water and general industrial, which is driving its top line as witnessed in the third quarter of 2022. Its volumes rose in the third quarter 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 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.
DuPont 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.
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.
Other top-ranked stocks worth considering in the basic materials space include Olympic Steel, Inc. (ZEUS - Free Report) , Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and Commercial Metals Company (CMC - Free Report) .
Olympic Steel currently sports a Zacks Rank #1 (Strong Buy). 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 30% in a year.
Sociedad has a projected earnings growth rate of 553.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 3.6% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 37.4%. SQM has rallied roughly 59% in a year. The company currently carries a Zacks Rank #1.
Commercial Metals currently carries a Zacks Rank #1. The consensus estimate for CMC's current-year earnings has been revised 8.7% 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 19.7%, on average. CMC has gained around 37% in a year.
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Here's Why You Should Add DuPont (DD) to Your Portfolio Now
Shares of DuPont de Nemours, Inc. (DD - Free Report) have popped around 33% over the past three months. It is benefiting from strong end-market demand, productivity actions and innovation-driven investment.
We are positive on the company’s prospects and believe that the time is right for you to add the stock to portfolio as it looks promising and is poised to carry the momentum ahead.
Let’s take a look into the factors that make this Zacks Rank #2 (Buy) stock an attractive choice for investors right now.
Healthy Growth Prospects
The Zacks Consensus Estimate for earnings for 2023 for DuPont is currently pegged at $3.80, implying an expected year-over-year growth of around 14.7%. The company also has an expected long-term earnings per share growth rate of 8%.
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 12.4%, on average.
Capital Allocation
The company remains focused on driving cash flow and shareholder value. It looks to boost cash flow through working capital productivity and earnings growth. DuPont returned $1,625 million to shareholders through share repurchases and dividends during the first nine months of 2022, including $415 million in the third quarter. It expects to return roughly $670 million in dividends for full-year 2022. DuPont's board, on Nov 7, 2022, also approved a new share buyback program authorizing the repurchase of up to $5 billion of common stock.
Growth Drivers in Place
DuPont is gaining from strong underlying demand in its major end-markets, especially semiconductor, water and general industrial, which is driving its top line as witnessed in the third quarter of 2022. Its volumes rose in the third quarter 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 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.
DuPont 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.
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.
DuPont de Nemours, Inc. Price and Consensus
DuPont de Nemours, Inc. price-consensus-chart | DuPont de Nemours, Inc. Quote
Other Stocks to Consider
Other top-ranked stocks worth considering in the basic materials space include Olympic Steel, Inc. (ZEUS - Free Report) , Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and Commercial Metals Company (CMC - Free Report) .
Olympic Steel currently sports a Zacks Rank #1 (Strong Buy). 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 30% in a year.
Sociedad has a projected earnings growth rate of 553.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 3.6% upward in the past 60 days.
Sociedad has a trailing four-quarter earnings surprise of roughly 37.4%. SQM has rallied roughly 59% in a year. The company currently carries a Zacks Rank #1.
Commercial Metals currently carries a Zacks Rank #1. The consensus estimate for CMC's current-year earnings has been revised 8.7% 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 19.7%, on average. CMC has gained around 37% in a year.