Stock Analysis | DuPont de Nemours Outlook - Mixed Signals from Fundamentals, Weak Technicals, and Strong Bearish Momentum

Market Snapshot

Headline Takeaway: DuPont de Nemours (DD) is showing a modest price rise in the short term but is weighed down by bearish technical indicators and mixed analyst sentiment. Stance: Cautious on technicals, neutral on fundamentals.

News Highlights

Recent headlines affecting the broader market and DD’s ecosystem include:

• Safex Chemicals Expands Manufacturing in Gujarat: A new facility is expected to create 300 jobs and boost production capacity in crop protection, hinting at increased demand in agricultural chemicals. This could benefit DD, as the company is also active in agrochemicals.
• US Restricts Shipments to China: New US policies are limiting the export of chip design software and chemicals to China. While the impact on DD is unclear, the company's exposure to global supply chains means it may feel both the risks and opportunities of tightened regulations.
• Tempus Launches New AI Diagnostic Program: Though not directly related to DD, the push for AI in diagnostics highlights growing investment in tech-driven solutions, which could eventually intersect with DD’s research into materials and chemicals.

Analyst Views & Fundamentals

Analyst ratings show a simple average rating of 4.33 and a performance-weighted score of 3.85, reflecting a generally positive but cautious outlook. The ratings are not fully consistent, with one "Strong Buy" and two "Buy" ratings in the last 20 days, suggesting varied perspectives on DD’s near-term potential.

These ratings are broadly aligned with the current 1.46% price rise, but the technical analysis strongly suggests caution, highlighting a mismatch between sentiment and chart indicators.

Key fundamental factors and their values include:

• Price-to-Earnings (PE) ratio: 856.36 — very high, indicating overvaluation or strong future expectations.
• Current assets turnover ratio: 0.957 — low, suggesting slow asset utilization.
• Cost of sales ratio: 62.64% — high, indicating a significant portion of revenue is used to cover cost of goods sold.
• Cash flow from operations (CFOA): 1.13% — low, indicating weak operating cash generation.
• Quick ratio: 0.9386 — near 1, showing limited liquidity buffer.

These factors contribute to a fundamental score of 4.8, indicating moderate strength. However, the high PE and low CFOA are notable red flags.

Money-Flow Trends

Despite a modest price rise, money-flow trends are negative across all investor categories, with inflow ratios slightly below 0.5 across the board:

• Large-investor inflow ratio: 0.4983 — slightly negative.
• Small-investor inflow ratio: 0.4981 — slightly negative.
• Overall inflow ratio: 0.4991 — close to neutral but trending bearish.

This suggests a lack of conviction among institutional and retail investors alike, and could foreshadow further pressure on DD’s stock price if the trend continues.

Key Technical Signals

Technical analysis is clearly bearish, with zero bullish and five bearish signals in the last five days. Internal diagnostic scores (0-10) for key indicators include:

• Relative Strength Index (RSI) Overbought: 1.66 — strongly bearish
• Williams %R (WR) Overbought: 2.52 — neutral to bearish
• Dividend Record Date: 1.27 — bearish
• Ex-Dividend Date: 1.27 — bearish
• Bullish Engulfing: 2.19 — neutral

Recent chart patterns include multiple instances of WR Overbought and RSI Overbought signals from August 26–29, along with the Ex-Dividend and Dividend Record Dates on August 29. These suggest overbought conditions and weak momentum, aligning with the technical analysis summary that warns of significant bearish signals and a weak market state.

Conclusion

While DuPont de Nemours’ fundamentals suggest moderate strength, its technical score of 1.78 and negative money-flow trends make it a risky play in the short term. Analysts remain cautiously optimistic, but the bearish chart signals and recent market events suggest that investors should consider waiting for a pull-back or clearer signs of momentum reversal before committing capital.