We recently published a list of Jim Cramer’s Latest Portfolio: 10 Stocks to Buy and Sell. Since DuPont de Nemours Inc (NYSE:DD) 6th on the list, it deserves a deeper look.
Jim Cramer in a new program discussed the latest market selloff again, saying the notion the broader meltdown was because of “hard landing” fears is “totally false.” Cramer said that it was all related to the Japanese stock market and Yen, and “nothing more.”
“A bunch of money managers took advantage of how you can borrow against Japanese bonds which had a very low interest rate and then have relatively free money which you can put to work in stocks all around the globe, including here (the US),” Cramer said.
Jim Cramer said that small-cap stocks are “trying to come” back. However, he pointed to an “issue” with the small-cap rally. He said that no one actually bought individual small-cap stocks and instead loaded up on ETFs. Investors, according to Cramer, “walked away” when the broader market wavered.
For this article we watched the latest programs on Cramer recently aired on CNBC and picked 10 stocks he’s talking about. With each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
DuPont de Nemours Inc (NYSE:DD)
Number of Hedge Fund Investors: 42
Cramer was asked about DuPont during a latest program on CNBC. Here is what he said:
“I heavily suggest you buy much more DuPont.”
Cramer said he believes the stock would reach $100.
“I want you to buy, buy, buy DD,” Cramer emphasized.
Last month DuPont de Nemours Inc (NYSE:DD) posted strong quarterly results and raised guidance. The company saw a 20% organic sales growth in its Semiconductor Technologies segment, fueled by strong volume growth in the electronics industry and increased demand for AI-driven technologies and OLED materials.
During the third quarter DuPont de Nemours Inc (NYSE:DD) expects its organic revenue growth to be driven by the Electronics and Industrial (E&I) segment, with the Water and Protection (W&P) segment expected to contribute in the fourth quarter.
DuPont de Nemours Inc (NYSE:DD) could be an interesting play for AI-focused investors. Why?
DuPont’s electronics segment accounts for about a third of its sales. DuPont de Nemours Inc (NYSE:DD) is well-positioned to benefit from the growing semiconductor market, driven by AI adoption, machine learning, cloud expansion, and the proliferation of IoT devices.
DuPont de Nemours Inc (NYSE:DD) raised its full-year net sales forecast to $12.40-$12.50 billion, up from the previous $12.10-$12.40 billion range, and upped its earnings guidance to $3.70-$3.80 per share, compared to the prior $3.45-$3.75 range.
Analysts expect the company to post $4.25 and $4.83 in adjusted EPS in 2025 and 2026, respectively. This means the stock has a forward PE of 18.9 on its expected 2025 earnings, and a 16.6 PE on its 2026 adjusted EPS forecast.
Overall, DuPont de Nemours Inc (NYSE:DD) ranks 6th on Insider Monkey’s list titled Jim Cramer’s Latest Portfolio: 10 Stocks to Buy and Sell. While we acknowledge the potential of DuPont de Nemours Inc (NYSE:DD), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than DD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.