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

Market Snapshot

Headline Takeaway: DuPont de Nemours is under technical pressure with bearish signals dominating, but fundamentals remain mixed, and recent news includes strategic moves in agriculture and energy sectors.

News Highlights

• Safex Chemicals Expands Manufacturing Footprint – On May 29, 2025, Safex Chemicals announced a new state-of-the-art facility in Bharuch, Gujarat, which will scale up production to 80 metric tons per day and create 300 jobs. This expansion could indirectly benefit companies like DuPont by boosting global demand for agrochemicals.
• U.S. Policy Shifts on China – Recent restrictions on chip design software, chemicals, and other shipments to China may affect global supply chains, potentially influencing DuPont’s exposure to high-tech and industrial markets. The policy could either create barriers or opportunities, depending on the company’s regional strategy.
• Large-Scale Solar and Battery Storage Milestone in Indonesia-Singapore – TotalEnergies and RGE were awarded a conditional license to import 1 GW of clean power to Singapore and supply to Indonesian industry. The growing renewable energy sector could create demand for materials and technologies that DuPont specializes in, such as advanced polymers and coatings.

Analyst Views & Fundamentals

DuPont de Nemours currently holds a simple average analyst rating of 4.33 and a performance-weighted score of 3.85. These scores suggest a relatively neutral to positive outlook from analysts, though there is some dispersion in the recommendations, with ratings ranging from “Strong Buy” to “Buy.”

While the average analyst ratings are in line with a current price rise of 0.81%, the fundamental score remains mixed, as shown in the table below:

• Price-to-Earnings (PE) Ratio: 856.36 (very high, suggesting overvaluation) — Internal diagnostic score: 1
• Cash-to-Market Value (Cash-MV): -0.85 (negative correlation) — Internal diagnostic score: 2
• Revenue-to-Market Value (Revenue-MV): -0.32 (suggests poor revenue efficiency) — Internal diagnostic score: 2
• Current Ratio: 141.15% (healthy liquidity) — Internal diagnostic score: 3
• Quick Ratio: 93.86% (also indicates solid liquidity) — Internal diagnostic score: 1
• Net Cash Flow from Operating Activities (YoY Growth Rate): -25.41% (declining operational cash flow) — Internal diagnostic score: 4
• Cost of Sales Ratio: 62.64% (elevated costs) — Internal diagnostic score: 2

The mixed fundamentals highlight the company's strong liquidity but high valuation and declining cash flow from operations.

Money-Flow Trends

Despite the technical bearishness, fund flow data shows that big-money investors are still showing some interest, with a positive flow in all major categories. Specifically:

• Small investor inflow ratio: 49.47%
• Medium investor inflow ratio: 48.93%
• Large investor inflow ratio: 48.48%
• Extra-large investor inflow ratio: 42.78%

While these ratios remain below 50% (indicating modest inflows), the fund flow score of 7.74 (on a 10-point scale) suggests that institutional and mid-sized investors are still somewhat confident in DuPont. This contrasts with the weak technical signals currently on the chart, indicating a potential divergence between institutional sentiment and market momentum.

Key Technical Signals

The technical picture for DuPont is clearly bearish, with 4 bearish signals and 0 bullish signals over the last five days. Below are the key indicators and their internal diagnostic scores:

• Williams %R Oversold: Internal diagnostic score: 3.43 — Suggests the stock has dipped into oversold territory, which could trigger a short-term bounce.
• RSI Oversold: Internal diagnostic score: 3.42 — RSI is also in oversold territory, but this has not yet triggered a strong reversal.
• Bearish Engulfing: Internal diagnostic score: 1 — A strong bearish candlestick pattern indicating increased bearish sentiment.
• Earnings Release Date: Internal diagnostic score: 1 — Historical data shows a negative average return of -1.43% following earnings, which may increase volatility around this period.

Recent Chart Patterns:

• August 15, 2025: Bearish Engulfing pattern was identified, signaling a possible downtrend.
• August 5, 2025: Earnings Release Date triggered bearish behavior in the past.
• July 31, 2025: WR Oversold signal appeared, hinting at potential short-term rebounds.

Overall, the technical score of 2.21 reflects a weak setup, with bearish momentum in control and oversold conditions not yet triggering a meaningful rebound.

Conclusion

Actionable Takeaway: Given the strong bearish technical signals, including a low technical score of 2.21, and mixed fundamentals, investors are advised to proceed with caution. While institutional investors are still showing some interest, the current trend does not favor aggressive entry.

Consider monitoring upcoming earnings for potential catalysts, but be mindful of the historical average negative return of -1.43% associated with the earnings release date. A pullback could be more attractive if the stock shows signs of bottoming in the coming weeks.