Stock Analysis | DuPont de Nemours Outlook - Bearish Technicals and Mixed Analyst Sentiment

1. Market Snapshot

Headline Takeaway: DuPont de Nemours (DD) is showing weak technical momentum with bearish indicators dominating, though recent price trends have risen 4.47% in the last 5 days.

Stance: The technical outlook is bearish with an internal diagnostic score of 1.92 out of 10, suggesting investors should avoid the stock in the near term.

2. News Highlights

Recent news items paint a mixed picture for the chemicals sector:

• Deloitte Report on U.S. Energy & Chemicals Industry: The industry is projected to grow its workforce by 4.1% through 2033, with a focus on AI integration and reskilling 1.2 million workers. This suggests long-term growth potential for companies like DuPont that are part of this sector.
• U.S. Trade Restrictions on China: New curbs on chip design software and chemical shipments to China could affect global supply chains and indirectly pressure chemical firms like DuPont that operate internationally. These restrictions signal a broader trend of geopolitical tension.
• ETF Industry Growth in Asia-Pacific: ETFGI reports that ETF assets in Asia-Pacific (excluding Japan) hit a new record of $1.25 trillion. This points to growing institutional interest in the region and could bode well for global chemical companies if demand for materials increases in the coming years.

3. Analyst Views & Fundamentals

DuPont de Nemours has received mixed analyst ratings recently. Here's a breakdown:

• Average Rating Score: The simple mean of analyst ratings is 4.33 on a 5-point scale, indicating a generally positive outlook from analysts.
• Weighted Rating Score: When weighted by historical performance, the rating drops slightly to 3.85, suggesting that while analysts are positive, their historical accuracy varies.
• Rating Consistency: Analysts are not in full agreement, with recent ratings ranging from 'Strong Buy' to 'Buy' across three firms—RBC Capital, Keybanc, and UBS. This dispersion indicates some uncertainty in the near-term outlook.
• Alignment with Price Trend: Despite the bearish technical signal, the stock has recently risen 4.47% in the last 5 days, suggesting a divergence between technical indicators and price movement.

Key Fundamental Factors:

• Net cash flow from operating activities per share (YoY growth rate %): 18.59% (score: 3)
• PCF (Price to Cash Flow): 145.50 (score: 2)
• PE (Price to Earnings): 856.36 (score: 1)
• Net income-Revenue: -1.51% (score: 1)
• Total profit / EBIT (%): -279.55% (score: 0)
• Net cash flow from operating activities (YoY growth rate %): 18.93% (score: 3)
• Cash-UP: 0.16 (score: 2)
• CFOA (Cash from Operating Activities): 1.13% (score: 0)
• Current ratio: 1.41 (score: 3)
• Cash-MV (Cash to Market Value): -0.85 (score: 2)

4. Money-Flow Trends

DuPont has seen a negative trend in recent money flows across all investor sizes:

• Large and Extra-large investors: The inflow ratio is around 0.48–0.42, suggesting institutional money is cautious and not heavily supporting the stock at this time.
• Small and Retail Investors: Inflow ratios are also in the negative range (0.49–0.50), indicating retail sentiment is not strong.

With a fund flow score of 7.84 (out of 10), the overall inflow remains relatively healthy, but the negative trend across all investor sizes suggests caution from the broader market.

5. Key Technical Signals

Technically, DuPont is showing clear bearish signals:

• Williams %R Overbought: This indicator is in overbought territory with an internal diagnostic score of 2.83, suggesting a potential reversal or correction is near.
• RSI Overbought: Even more concerning is the RSI, which is also overbought with a weak score of 1.00, indicating strong bearish momentum.

Over the past 5 trading days (up to 2025-08-25), the 'Williams %R Overbought' signal has been active on multiple days, including 2025-08-22, 2025-08-21, 2025-08-25, and 2025-08-19. This repeated pattern confirms the overbought condition and reinforces the bearish outlook.

Key Insight: Technical indicators show a weak market with bearish signals (2) clearly dominating over bullish ones (0). Investors should closely watch for a pullback or correction.

6. Conclusion

While DuPont de Nemours has seen a recent price rise and some positive analyst ratings, the technical indicators are strongly bearish. The fundamentals show mixed signals, with some strong cash flow growth but low net income margins. Given the weak technical score (1.92/10) and the overbought condition from key indicators, investors may want to consider waiting for a pull-back or waiting for clearer bullish confirmation before entering or adding to positions.