Stock Analysis | DuPont de Nemours Outlook - A Weak Technical Picture with Mixed Analyst Signals

Market Snapshot

Takeaway: DuPont de Nemours (DD) is currently facing a weak technical outlook with bearish signals dominating and an internal diagnostic score of just 2.58. However, fundamentals remain reasonably strong with a score of 5.99, and recent news hints at broader industry growth in the chemicals sector.

News Highlights

Recent Industry Developments:

• Deloitte Report on Energy & Chemicals Industry: The U.S. Energy & Chemicals industry is projected to grow by 4.1% by 2033, with a focus on AI and workforce upskilling. This is positive for DuPont de Nemours, a major player in this field.
• Safex Chemicals Expansion: A new manufacturing facility in India is set to boost production capacity and create jobs, signaling broader growth potential in the chemical sector that could benefit DD.
• U.S. Export Restrictions on Chemicals: Recent policy changes may impact the global supply chain for chemicals, potentially creating challenges for export-oriented chemical firms like DD in the short term.

Analyst Views & Fundamentals

Analyst Consensus:

• Average Rating (Simple Mean): 4.33 (on a scale where "Strong Buy" is highest).
• Performance-Weighted Rating: 3.85, factoring in historical performance and confidence levels.
• Rating Consistency: The ratings are mixed, with "Strong Buy," "Buy," and other categories represented, indicating no strong consensus.
• Alignment with Price Trend: Despite a recent price rise of 5.72%, the ratings are relatively neutral, suggesting a cautious outlook among analysts.

Key Fundamental Factors:

• Gross Profit Margin: 37.36% (internal diagnostic score: 2.00).
• Net Cash Flow from Operating Activities (YoY growth): 18.93% (score: 3.94).
• Current Ratio: 1.41 (score: 3.83).
• Cost of Sales Ratio: 62.64% (score: 2.05).
• PE Ratio: 856.36 (score: 1.29).

Money-Flow Trends

Big-Money vs. Retail Flows:

• Overall Inflow Ratio: 45.80% (internal diagnostic score: 7.83, labeled “good”).
• Extra-Large Inflow Ratio: 42.21%, suggesting that institutional investors are not aggressively buying in.
• Small, Medium, and Large Inflow Ratios: All show negative trends, indicating that across the board, funds are moving out rather than in.

This mixed picture implies that while large investors are not overly enthusiastic, smaller investors also show caution. The overall negative trend in money flows could pressure the stock further.

Key Technical Signals

Technical Indicators:

• WR Overbought: Score: 2.84 (internal diagnostic score). This suggests a neutral to bearish outlook on short-term momentum.
• RSI Overbought: Score: 1.00 (internal diagnostic score), indicating a strong bearish bias.
• Bullish Engulfing: Score: 3.89 (internal diagnostic score). A more neutral-to-positive candlestick pattern, but it is outweighed by the bearish signals.

Recent Chart Patterns (Last 5 Days):

• 2025-08-26: WR Overbought and Bullish Engulfing patterns observed.
• 2025-08-22: WR Overbought and RSI Overbought signals again appeared, reinforcing bearish sentiment.

Momentum Quality: The overall trend is bearish, with 3 bearish indicators and none bullish. The technical outlook is weak, and the model advises avoiding the stock at this time.

Conclusion

Despite a robust fundamental profile and some encouraging industry developments, DuPont de Nemours (DD) is currently facing a challenging technical environment with weak momentum signals and a low technical score of 2.58. Analysts are also split, and money flows are trending negative. Investors may want to wait for a clearer technical reversal or stronger earnings catalysts before considering an entry.