DuPont de Nemours Outlook - Mixed Signals Amid Strong Fundamentals and Weak Technicals

Market Snapshot

Headline Takeaway: DuPont de Nemours (DD) is currently showing mixed signals — strong fundamentals but weak technicals, with a recent price rise of 1.74%.

News Highlights

Recent global and economic news may have indirect impacts on DD's performance:

• U.S. Vaccine Policy Shift: Changes to how the U.S. Department of Health and Human Services is handling vaccine approvals could affect broader market sentiment, including industrial and chemical stocks like DD.
• China's Factory Activity: China's factory activity remained in contraction territory in May, with its PMI at 49.5. While this may not directly affect DD, it reflects weaker global demand for industrial materials.
• Tariff Developments: President Trump's continued focus on tariffs, particularly with China, may introduce volatility in sectors where DD has exposure. This underscores the importance of tracking macroeconomic policy shifts.

Analyst Views & Fundamentals

Analysts are cautiously optimistic about DD, with a simple average rating of 4.33 and a performance-weighted rating of 3.85. The ratings are not perfectly aligned — there is some dispersion, with one "Strong Buy" and two "Buy" ratings from analysts at RBC Capital, UBS, and KeyBanc in the past 20 days. However, the current price trend (1.74% rise) aligns with a generally positive weighted expectation.

Key Fundamentals

• Net Cash Flow from Operating Activities per Share (YoY Growth Rate): 18.59% – strong growth, with an internal diagnostic score of 6.35.
• Quick Ratio: 0.94% – showing moderate liquidity, scoring 2.38.
• Net Cash Flow from Operating Activities (YoY Growth Rate): 18.93% – another robust operating cash flow, internal score of 6.35.
• Cost of Sales Ratio: 62.64% – indicating decent cost efficiency, scoring 6.35.
• Current Ratio: 1.41% – relatively healthy, internal score of 6.35.

Money-Flow Trends

Big-money investors are currently cautious — the overall trend in fund flows is negative, with internal fund-flow score of 7.79 (a "good" rating). Retail investors, on the other hand, are showing a positive trend with a small-inflow ratio of 50.17%. However, large, extra-large, and block flows are all negative, pointing to a lack of institutional conviction.

Key Technical Signals

Technically, DD is in a weak position. The internal technical score is 1.44, a clear "avoid" rating. Here’s why:

Recent Indicator Scores

• WR Overbought: Internal score of 2.38 — showing a neutral-to-positive bias.
• MACD Death Cross: Internal score of 1.38 — strongly bearish.
• Ex-Dividend Date & Dividend Record Date: both score 1.00 — also bearish, with historical averages of -0.33% and -0.96% respectively.

Recent Chart Patterns

• 2025-09-10: MACD Death Cross triggered — a clear bearish signal.
• 2025-09-11: WR Overbought — neutral but worth watching for reversal signs.
• 2025-08-28 & 2025-09-05: Repeated WR Overbought readings — could indicate overbought conditions.
• 2025-08-29: Ex-Dividend and Record Dates — historically bearish around these times.

Trend Summary

The technical indicators are overwhelmingly bearish — 4 out of 4 bearish, with no bullish signals. Internal diagnostic analysis shows a weak trend, and the market is advised to avoid DD at the moment.

Conclusion

While the fundamentals for DuPont de Nemours remain strong — with robust cash flow and decent liquidity — the technical and fund-flow signals are bearish. With a technical score of 1.44 and negative big-money flows, we recommend caution and a wait-and-watch approach for now. Retail investors may be optimistic, but institutional money is moving out. It could be wise to wait for a clearer trend before entering a position.