5 Best Basic Material Stocks to Buy Now

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

Number of Hedge Fund Holders: 57

American chemical company DuPont de Nemours, Inc. (NYSE:DD) ranks second on the list of 10 best material stocks to buy now. The Delaware-based company is one of the world’s biggest producers of specialty chemicals producers. The company manufactures and sells adhesives, polymers, photovoltaics, resins, and lubricants used in a variety of applications such in the medical, industrial, telecom, and automotive industries.

On October 5, JPMorgan analysts upgraded DuPont de Nemours, Inc. (NYSE:DD) to Overweight from Neutral and increased its price target for the stock to $85 from $84.

In the second quarter of 2021, DuPont de Nemours, Inc. (NYSE:DD) reported an EPS of $1.06, beating estimates by $0.11. The company’s revenue in the second quarter was $4.13 billion. Shares of DuPont de Nemours, Inc. (NYSE:DD) increased 25% in the past twelve months.

At the end of the second quarter of 2021, 55 hedge funds in the database of Insider Monkey held stakes worth $1.65 billion in DuPont de Nemours, Inc. (NYSE:DD), up from 49 hedge funds in the previous quarter worth $1.72 billion.

Rhizome Partners mentioned DuPont de Nemours, Inc. (NYSE:DD) in its Q1 2021 investor letter:

“We have written extensively about the anticipated DuPont’s Reverse Morris Trust merger with International Flavors and Fragrances (IFF) in January of 2021. During the quarter, DuPont shares traded up significantly in anticipation of the deal. We tendered about 40% of our DuPont shares for IFF and received about half of the allocation due to pro-ration. Investors are finally starting to appreciate DuPont’s effort to cut costs, streamline operations, and spin off companies into pure-play companies that trade at higher multiples. We are still getting used to the higher multiples that investors will pay for larger market cap and pure play companies such as DuPont.”