Stock Analysis | DuPont de Nemours Outlook - A Stock to Avoid Amid Weak Technical Signals

Market Snapshot: A Cautionary Signal for Investors

Takeaway: The technical outlook for DuPont de Nemours (DD) is weak, with more bearish indicators than bullish ones, suggesting investors should proceed with caution or avoid the stock for now. The stock has seen a recent rise of 5.10%, but this appears to be out of step with the strong bearish technical signals emerging in the market.

News Highlights: Limited Impact on the Core Business

While the news stream includes items about chemical manufacturing expansions, US-China trade restrictions, and new ETF industry records, none of these directly impact DuPont de Nemours' business operations or strategic direction in a material way. Notably:

• Safex Chemicals has announced a new manufacturing facility in Gujarat, India, which could hint at growing demand for crop protection solutions, but does not directly affect DuPont.
• US-China trade curbs include restrictions on chip design software and chemicals—while DuPont is a chemical company, the specific products and markets affected do not directly relate to its core business at this time.
• Asia-Pacific ETFs hit a $1.25 trillion milestone, but this is more of a macro trend and not a direct influencer for DD.

Analyst Views & Fundamentals: Mixed Signals

Three key analysts from Keybanc, RBC Capital, and UBS have recently rated DuPont de Nemours as either Buy or Strong Buy over the past 20 days. However, these recommendations are somewhat inconsistent in performance:

• Average rating score (simple mean): 4.33
• Weighted rating score (performance-weighted): 3.85
• Rating consistency: Analysts are not aligned, with ratings ranging from Strong Buy to Buy, and their historical performance varies widely (from 40% to 66.7% win rates).

While the recent price has risen by 5.10%, the 3.85 weighted rating score suggests the market might be overestimating the stock’s near-term potential.

Fundamental Highlights:

• PE ratio: 856.36 (internal diagnostic score: 1) – extremely high, suggesting overvaluation.
• Net cash flow from operating activities per share (YoY growth rate %): 18.59% (internal diagnostic score: 3) – decent, but not exceptional.
• Net cash flow from operating activities (YoY growth rate %): 18.93% (internal diagnostic score: 3) – shows consistent operating strength.
• Current ratio: 1.41 (internal diagnostic score: 2) – indicates moderate liquidity.
• Cost of sales ratio (%): 62.64% (internal diagnostic score: 2) – shows room for improvement in cost efficiency.

Money-Flow Trends: A Broad-Scale Sell-off

Large institutional money flows are negative across all categories, with only small retail inflow showing a slightly more neutral stance:

• Extra-large money flow: 42.48% (trend: negative) – large investors are clearly selling.
• Large money flow: 49.64% (trend: negative) – further evidence of institutional concern.
• Small money flow: 49.91% (trend: negative) – even retail investors are cautious.
• Overall fund flow score: 7.81 (internal diagnostic score: good) – while the inflow ratios are negative, the model still rates the overall flow positively due to the clarity of the directional signal.

Key Technical Signals: Overbought and Dividend-Driven Weakness

The technical outlook for DuPont de Nemours is clearly bearish, with 5 bearish indicators against zero bullish ones. Here's a breakdown of the key signals:

Internal Diagnostic Scores (0-10):

• WR Overbought: 3.17 – neutral rise in short-term momentum.
• RSI Overbought: 2.28 – strong bearish signal due to overbought conditions.
• Ex-Dividend Date: 1.27 – historically weak returns around this event.
• Dividend Record Date: 1.27 – also weak, as investors tend to sell ahead of ex-dates.
• Bullish Engulfing: 3.89 – a rare positive pattern, but not enough to offset the bearish trend.

Recent Chart Patterns by Date:

• 2025-08-26: WR Overbought and Bullish Engulfing – mixed signals.
• 2025-08-27: WR Overbought and RSI Overbought – bearish confirmation.
• 2025-08-29: Ex-Dividend and Dividend Record Dates – both historically bearish events.

Key Insight: The technical indicators show a weak market state, with 5 bearish signals versus zero bullish ones. The trend is clearly downward, and the risk of a decline is high.

Conclusion: A Stock to Avoid for Now

Given the weak technical signals, mixed analyst ratings, and clear bearish momentum, DuPont de Nemours (DD) is not a favorable pick for new investors at this time. The 2.38 internal diagnostic score on technicals is a red flag. While the fundamentals show moderate operating strength, the current price trend and large-scale money flows suggest a likely pullback. Investors are advised to wait for a clearer entry signal or reassess after the next earnings report for potential turning points.