DowDuPont’s DWDP Agriculture Division — Corteva Agriscience — intends to commercially launch Enlist E3 soybeans in the United States, Canada and Brazil starting this year. Also, the unit plans to expand the launch of Qrome products across the U.S. Corn Belt.
Per the company, it is one of the largest soybean technology system launches ever. Enlist E3 soybeans include advanced herbicide tolerance through three action modes. It enables the use of the company’s proprietary Enlist One and Enlist Duo herbicides to provide complete solutions to farmers.
Moreover, Qrome hybrids demonstrated consistent performance and produced high yields by combining top-tier genetics, advanced seed treatments and strong defensive traits. Also, grain produced from Qrome and Enlist E3 soybeans received import authorization from China in January 2019.
Notably, Dow AgroSciences and MS Technologies jointly developed Enlist E3 soybeans. Corteva Agriscience plans to launch more than 20 new technologies, including Enlist E3 soybeans and Qrome corn products, by 2021. It is part of the company’s strategy to expand as well as boost customers’ and shareholders’ value through the combined seed and crop protection pipeline.
DowDuPont’s shares have lost 13.8% in the past six months compared with the industry’s decline of 16.8%.
During third-quarter 2018 earnings call, DowDuPont stated that it is witnessing strong global demand for products on business investment, manufacturing output, job growth and wage increases. The company will continue to focus on driving the top line via above-GDP demand growth for products, new launches as well as delivering productivity and cost synergy savings.
DowDuPont achieved cost synergy savings of more than $450 million in the third quarter. The company raised cost synergy commitment to $3.6 billion from the previous projection of $3.3 billion. Moreover, it raised year-over-year savings view for 2018 to $1.5 billion from prior expectation of $1.4 billion.
Zacks Rank & Key Picks
DowDuPont currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the basic materials space are Ingevity Corporation NGVT, Cameco Corporation CCJ and Israel Chemicals Ltd. ICL. While Ingevity sports a Zacks Rank #1 (Strong Buy), Cameco and Israel Chemicals carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ingevity has an expected earnings growth rate of 21.5% for 2019. The company’s shares have gained 15.5% in the past year.
Cameco has an expected earnings growth rate of 20% for 2019. Its shares have rallied 27.7% in a year’s time.
Israel Chemicals has an expected earnings growth rate of 5.4% for 2019. Its shares have rallied 32% in a year’s time.
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