Stock Analysis

At US$73.65, Is It Time To Put DuPont de Nemours, Inc. (NYSE:DD) On Your Watch List?

NYSE:DD
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Let's talk about the popular DuPont de Nemours, Inc. (NYSE:DD). The company's shares received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$78.08 at one point, and dropping to the lows of US$69.20. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether DuPont de Nemours' current trading price of US$73.65 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at DuPont de Nemours’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for DuPont de Nemours

What Is DuPont de Nemours Worth?

Great news for investors – DuPont de Nemours is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is $113.16, but it is currently trading at US$73.65 on the share market, meaning that there is still an opportunity to buy now. However, given that DuPont de Nemours’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of DuPont de Nemours look like?

earnings-and-revenue-growth
NYSE:DD Earnings and Revenue Growth October 6th 2023

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. DuPont de Nemours' earnings over the next few years are expected to increase by 95%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since DD is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on DD for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy DD. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

If you want to dive deeper into DuPont de Nemours, you'd also look into what risks it is currently facing. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of DuPont de Nemours.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.