10 Best Basic Materials Stocks To Buy Now

6. DuPont de Nemours, Inc. (NYSE:DD)

Number of Hedge Fund Holders: 58

Market Capitalization as of October 10, 2024: $35.77 billion

A worldwide specialty chemicals conglomerate with a diverse portfolio, DuPont de Nemours, Inc. (NYSE:DD) was established in 2019 following the separations and merging of DowDuPont. Specialty chemicals and downstream products for the electronics, water, construction, safety and protection, automotive, and health care industries are part of its offering.

The firm intends to split the business into three moving forward: an electronics-focused firm, a water-focused company, and a company with a broader exposure to end markets. It will produce value for investors by means of three more specialized companies that have the capacity to allocate capital more effectively. Analysts at Morningstar predict the divisions to happen by the middle of 2026.

After DuPont de Nemours, Inc. (NYSE:DD)’s Q2 earnings beat, BMO Capital analyst John McNulty increased the company’s price objective for the shares to $100 from $96 and maintained an Outperform rating. The analyst notes that the company’s end markets are beginning to improve as Electronics volumes accelerate due to generally improving utilization rates and increased chip complexity. The challenges facing the Water & Protection segment are similarly moderate in Water and Safety, and the company stated that DuPont’s Shelter Solutions division should grow in 2025 if rate cuts occur.

In response to the company’s better-than-expected Q2 2024 earnings and raised guidance, RBC Capital also increased the firm’s price objective for the shares to $102 from $87 and maintained its Outperform rating. The analyst tells investors in a research note that the firm is still bullish on the company because it has almost fully addressed its PFAS obligations, is growing margins through cost reductions and volume recovery, and has a solid balance sheet.

.Jim Cramer was asked about DuPont during a program on CNBC. Here is what he said:

“I heavily suggest you buy much more DuPont.”

E. Shaw’s D E Shaw is the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns 4,313,512 shares worth $347.19 million as of Q2.