Stock Analysis | DuPont de Nemours Outlook - Technicals Signal Weakness Amid Mixed Analyst Ratings

Market Snapshot – DuPont de Nemours: A Cautionary Signal

Takeaway: While the stock has recently risen by 5.10%, our internal diagnostic score for technical indicators is 2.38 (0–10), suggesting the market is in a weak state and a potential pullback should be watched. Analysts are divided, but key fundamental metrics remain mixed.

News Highlights – Industry Trends and Global Policy Shifts

• Safex Chemicals Expands Manufacturing: The company announced a new facility in India to boost crop protection solutions and add 300 jobs. While this news is positive for the chemical industry broadly, it does not directly impact DuPont.
• US Vaccine Policy Changes: The US Department of Health and Human Services has revised its vaccine approval process for at-risk groups. While not a direct factor for DuPont, it reflects broader regulatory shifts that could affect long-term market sentiment in healthcare and pharma-linked sectors.
• China Trade Restrictions: New US policies limit shipments of chip design software and chemicals to China. Given DuPont’s global materials exposure, this could affect demand and supply chains over the long term.

Analyst Views & Fundamentals – Mixed Signals From Experts

Average Rating Score (simple mean): 4.33
Weighted Rating Score (performance-weighted): 3.85
Rating Consistency: Analysts are somewhat divided, with one "Strong Buy" and two "Buy" ratings in the past 20 days. The current price rise appears to align with the weighted expectations, but the divergence in ratings suggests caution.

Key Fundamental Values and Internal Scores:

• Net Cash Flow from Operating Activities per Share (YoY): 18.59% – Internal diagnostic score: 3.00
• Price to Earnings (PE) Ratio: 856.36 – Internal diagnostic score: 1.00
• Cost of Sales Ratio: 62.64% – Internal diagnostic score: 2.00
• Total Assets Turnover Ratio: 17.28% – Internal diagnostic score: 1.00
• Cash-UP (Cash to Market Value): -0.85 – Internal diagnostic score: 2.00

While cash flow from operations is improving, the sky-high PE ratio and elevated cost of sales ratio are red flags. These factors suggest that while the company is generating operational cash, its earnings and efficiency are under pressure.

Money-Flow Trends – A Bearish Inflow Pattern

The fund-flow analysis shows a negative overall trend with large, extra-large, and medium investor inflow ratios all below 50%. Specifically:

• Small investor inflow ratio: 49.91%
• Medium investor inflow ratio: 49.87%
• Large investor inflow ratio: 49.64%
• Extra-large investor inflow ratio: 42.48%

With an overall inflow ratio of 46.08%, the fund-flow score is 7.81 (0–10), classified as "good." However, the negative trend suggests that big-money investors are cautious, and retail activity is also bearish. This divergence between inflow and price movement is worth watching.

Key Technical Signals – A Bearish Chart Picture

DuPont’s technical indicators are heavily bearish. Of the five indicators analyzed, five are negative and zero are bullish. The internal diagnostic score is 2.38 (0–10), and the trend is described as "weak," with a recommendation to avoid the stock.

• RSI Overbought – Internal diagnostic score: 2.28
  Historical signals: 12, average return: -0.14%
• Ex-Dividend Date – Internal diagnostic score: 1.27
  Historical signals: 3, average return: -0.26%
• Dividend Record Date – Internal diagnostic score: 1.27
  Historical signals: 3, average return: -0.26%

Key recent patterns include the WR Overbought and Bullish Engulfing signals over the last five days. However, these positive candlestick patterns were quickly overshadowed by RSI overbought conditions and the upcoming dividend events.

Conclusion – A Stock to Monitor Closely

DuPont de Nemours presents a mixed outlook. While fundamentals show some strength in operating cash flow, the high PE ratio and cost of sales are concerning. Technically, the stock is weak, and fund flows suggest investor caution. Analysts remain split, with performance-weighted ratings slightly lagging the current price rise.

Actionable Takeaway: Consider holding off on new long positions and watch for a clearer breakout or pullback after the dividend events in early September. Keep an eye on earnings in the coming quarters for more clarity on management's strategy and financial health.