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

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DuPont de Nemours (DD) closed at $55.35 in the latest trading session, marking a -1% move from the prior day. This move lagged the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.15%.

Prior to today's trading, shares of the specialty chemicals maker had lost 14.52% over the past month. This has lagged the Basic Materials sector's loss of 11.11% and the S&P 500's loss of 3.49% in that time.

Wall Street will be looking for positivity from DuPont de Nemours as it approaches its next earnings report date. On that day, DuPont de Nemours is projected to report earnings of $0.76 per share, which would represent a year-over-year decline of 28.3%. Our most recent consensus estimate is calling for quarterly revenue of $3.27 billion, down 20.92% from the year-ago period.

DD's full-year Zacks Consensus Estimates are calling for earnings of $3.39 per share and revenue of $13.52 billion. These results would represent year-over-year changes of -21.16% and -18.81%, respectively.

Any recent changes to analyst estimates for DuPont de Nemours should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.21% lower. DuPont de Nemours is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that DuPont de Nemours has a Forward P/E ratio of 16.49 right now. Its industry sports an average Forward P/E of 9.26, so we one might conclude that DuPont de Nemours is trading at a premium comparatively.

It is also worth noting that DD currently has a PEG ratio of 1.78. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DD's industry had an average PEG ratio of 0.97 as of yesterday's close.

The Chemical - Diversified industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow DD in the coming trading sessions, be sure to utilize Zacks.com.


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