DuPont de Nemours Outlook - A Cautionary Signal in a Mixed Market

Market Snapshot

Takeaway: DuPont de Nemours (DD) is showing signs of technical weakness with a bearish tilt, while fundamentals remain mixed but generally stable. The stock rose slightly (1.01%) recently, but technical signals suggest caution.

News Highlights

Here are three recent stories that may influence market sentiment:

• U.S. Adjusts Covid-19 Vaccine Policy: Changes by the Department of Health and Human Services under Secretary Robert F. Kennedy Jr. could impact public health demand and insurance sectors—less directly relevant for DuPont, but could affect overall market risk appetite.
• Trump Fast-Traces Utah Uranium Mine: Moves to revive uranium mining may indirectly impact commodity prices and energy markets, but the sector's revival is likely contingent on higher prices—so near-term implications for DuPont are limited.
• China’s Factory Activity Slows: China’s manufacturing PMI rose slightly to 49.5 in May (down from 50 = expansion), indicating continued contraction. This could weigh on global demand for industrial materials, which might impact DuPont’s performance in the long run.

Analyst Views & Fundamentals

Analysts remain cautiously optimistic about DuPont, but there are diverging views:

• Average Rating Score (Simple Mean): 4.33
• Weighted Rating Score (Performance-Weighted): 3.85
• Rating Consistency: Mixed—three major institutions issued ratings (1 Strong Buy, 2 Buy), indicating general optimism but with some caution.

This is aligned with the current price trend of a 1.01% rise, though the ratings are not strong enough to override the bearish technical signals.

Key Fundamental Factors

Here are the most notable fundamentals, with proprietary model scores (0-10) indicating strength:

• Net Cash Flow from Operating Activities per Share (YoY Growth Rate %): 18.59% (Internal Diagnostic Score: 5.37)
• Price-to-Cash Flow (PCF): 145.49 (Score: 3.00)
• Price-to-Earnings (PE): 856.36 (Score: 0.76)
• Net Cash Flow from Operating Activities (YoY Growth Rate %): 18.93% (Score: 5.37)
• Total Profit / EBIT (%): -279.55% (Score: 0.00)
• Cash-UP: 16.45% (Score: 2.19)
• Total Assets Turnover Ratio: 17.28% (Score: 0.91)
• Cost of Sales Ratio (%): 62.64% (Score: 1.78)
• Cash-MV: -85.32% (Score: 2.19)

While operating cash flow growth is strong (18.59%), the company's extremely high PE ratio (856.36) and weak leverage (Total Profit / EBIT at -279.55%) suggest the stock is overvalued and carrying high risk.

Money-Flow Trends

DuPont’s stock saw mixed fund-flow behavior recently, with larger investors showing caution:

• Overall Inflow Ratio: 49.22% (slightly below average, suggesting modest outflows overall)
• Big-Money (Large & Extra-Large) Trends: Mixed—while Large investors showed positive inflows (50.21%), Extra-Large investors were bearish (48.40%).
• Retail (Small) Investors: Positive (50.74%)—they are buying in, but institutional activity is mixed.

This suggests retail confidence is growing, but institutional investors are cautious. The fund-flow score is 7.74, which is “good” by our internal metrics—showing that DD is attracting attention, but not strongly.

Key Technical Signals

The technical analysis for DuPont is bearish, with 5 negative indicators outweighing zero positive ones:

Internal Diagnostic Scores for Indicators

• Williams %R Overbought: Internal Diagnostic Score: 2.52 — Suggesting some upward bias but limited strength.
• RSI Overbought: Score: 1.66 — A strong bearish signal.
• Dividend Record Date: Score: 1.00 — Slightly bearish due to historical behavior around dividend dates.
• Ex-Dividend Date: Score: 1.00 — Also bearish, as seen in past patterns.
• Bullish Engulfing: Score: 2.19 — A neutral bias with limited upside.

Recent Chart Patterns

In the last 5 days, key signals included:

• August 26: Williams %R overbought and a Bullish Engulfing pattern—suggesting a temporary upswing.
• August 28 & September 5: Williams %R overbought again—confirming a weak rally.
• August 27 & 29: RSI overbought and both the Ex-Dividend and Dividend Record Dates—both historically bearish events.

Overall, the technical score is 1.67, and the key insight is that the technical side is weak, and investors are advised to avoid or stay cautious.

Conclusion

While DuPont shows mixed fundamentals and some retail optimism, the technical outlook is clearly bearish. Analysts remain cautiously positive, but with no strong consensus. Given the weak technical signals and internal diagnostic scores (especially the 1.66 score for RSI Overbought), investors should consider waiting for a pull-back or further confirmation before entering a position.