Jim Cramer on Netflix and Other Stocks

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

Number of Hedge Fund Holders: 58

DuPont de Nemours, Inc. (NYSE:DD) is a technology-driven company that specializes in materials and solutions across various sectors. Cramer mentioned that Barclays dislikes the company. Cramer expressed that following analysts would have led to missing out on profits and likely selling shares before the three-way breakup orchestrated by Chairman Ed Breen, whom he regards as a top breakup strategist.

“Why does Barclays do this? Why did they downgrade it? Well, it took it to sell after a really nice run that you wouldn’t have caught a penny of if you listened to the analysts. You’d be selling it right now, before the three-way breakup masterminded by Chairman Ed Breen, one of the greatest breakup artists to ever play the game. Seems crazy to me. But I guess Barclays feels that Breen doesn’t know what he’s doing. I wouldn’t take that bet. I say buy DuPont.”

In May, DuPont de Nemours (NYSE:DD) announced plans to separate into three publicly traded companies. It included the divestiture of its Electronics and Water businesses, while the New DuPont continues to operate as a diversified industrial firm.

The new entity includes the Water & Protection segment (excluding Water Solutions), a majority of the Industrial Solutions segment, where healthcare is included, and certain businesses categorized under Corporate, such as adhesives. The combined businesses generated around $6.6 billion in net sales, with an operating EBITDA margin of approximately 24% in 2023.

Moreover, DuPont de Nemours (NYSE:DD) has revised its guidance for the full year 2024, indicating an optimistic outlook for net sales, operating EBITDA, and adjusted earnings per share. Management forecasts net sales to reach approximately $12.45 billion, with an operating EBITDA of around $3.085 billion and adjusted EPS estimated at $3.75.

As for the third quarter, the company expects to see organic sales growth return, driven by the Electronics & Industrial segment, with anticipated growth in both sales and earnings from Water & Protection starting in the fourth quarter.