Is DuPont de Nemours Stock Outperforming the Nasdaq?

Wilmington, Delaware-based DuPont de Nemours, Inc. (DD) provides technology-based materials and solutions. Valued at a market cap of $32.5 billion, the company serves various markets, including electronics, transportation, construction, health and wellness, food, and worker safety.

Companies worth $10 billion or more are typically classified as “large-cap stocks,” and DD fits the label perfectly, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the specialty chemicals industry. The company’s key strengths lie in its strong research and development capabilities, enabling it to drive innovation in high-performance materials, adhesives, and sustainable solutions. Its diverse product portfolio includes cutting-edge solutions in semiconductor technologies, water filtration systems, and bio-based materials. Additionally, DuPont benefits from a strong global presence, strategic acquisitions, and a commitment to sustainability, positioning it as a leader in science-driven industrial advancements.

This chemical company is currently trading 14.4% below its 52-week high of $90.06, reached on Sep. 27, 2024. Shares of DD have marginally declined over the past three months, outpacing the broader Nasdaq Composite’s ($NASX) 9.7% loss during the same time frame.

Moreover, on a YTD basis, shares of DD are up 1.1%, outperforming NASX’s 9.4% decline. However, in the longer term, DD has gained 4.9% over the past 52 weeks, lagging behind NASX’s 8.7% rise. 

To confirm its bearish trend, DuPont began trading below its 50-day moving average in early March and has remained below its 200-day moving average since March. 

On Feb. 11, DuPont's shares surged 6.9% following its Q4 earnings release, as the company reported stronger-than-expected results. It posted adjusted earnings of $1.13 per share and revenue of $3.1 billion, both surpassing estimates. Moreover, earnings grew by a notable 29.9% from the year-ago quarter, while revenue saw a 6.7% annual increase. 

DD benefitted from the expanding semiconductor market, driving a robust 10.6% annual growth in its core Electronics & Industrial segment. Additionally, steady growth in its Water & Protection unit further bolstered the results. 

Looking ahead, DuPont expects to maintain its positive momentum into 2025. For the full fiscal year, the company projects consolidated net sales between $12.8 billion and $12.9 billion and forecasts adjusted EPS in the range of $4.30 - $4.40. The company's full-year net sales outlook is based on an anticipated mid-single-digit organic growth rate.

DD has lagged behind its rival, Air Products and Chemicals, Inc.’s (APD) 18.8% rise over the past 52 weeks but has outpaced APD’s marginal gain on a YTD basis. 

Looking at DD’s recent outperformance relative to the Nasdaq, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 16 analysts covering it, and the mean price target of $99.14 suggests a nearly 28.6% premium to its current levels.