|Bid||64.00 x 800|
|Ask||0.00 x 1100|
|Day's Range||67.09 - 68.59|
|52 Week Range||17.84 - 102.38|
|Beta (3Y Monthly)||1.21|
|PE Ratio (TTM)||56.19|
|Earnings Date||Nov 1, 2019 - Nov 5, 2019|
|Forward Dividend & Yield||3.00 (4.47%)|
|1y Target Est||84.71|
Chemicals maker Dow (NYSE:DOW) is the smallest member of the Dow Jones Industrial Average (DJIA) by market value. The blue-chip index weights its members by price, not the traditional market cap weighting scheme, but even by price weighting, Dow stock is the second-smallest member of the Dow Jones Industrial Average.Source: JHVEPhoto / Shutterstock.com That's the good news because Dow stock has recently been repudiated in significant fashion with the U.S.-China trade spat serving as major drag on the shares. While Michigan-based Dow operates in a stodgy industry (chemicals) and probably should be seen as a value name rather than a growth stock, it's a cyclical stock, meaning it's likely not an appropriate holding for conservative investors in the current market environment.Recent price action confirms as much. Year-to-date, Dow stock is one of just seven members of the DJIA that are in the red and one of just four with 2019 losses of 10% or more. Simply put, in price, there is truth, and the truth for Dow stock right now is largely unappealing, particularly with the shares in the midst of a month-to-date slide of 15.17% (as of Aug. 20).InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Marijuana Stocks to Ride High on the Farm Bill Dow is one of three companies spun off from the merged Dow/DuPont company. The others are DuPont de Nemours (NYSE:DD), and Corteva (NYSE:CTVA). Only Corteva is trading higher since the spin-offs.The primary drivers of Dow stock performance from an operating unit standpoint are the company's Performance Materials and Coatings, Industrial Intermediates and Infrastructure and Packaging and Specialty Plastics businesses. They Can't All Be WrongLast month, Dow CEO Jim Fitterling said trade tensions are weighing on consumer confidence, impacting purchases of larger ticket items that Dow makes ingredients for. As a result, the company lowered its 2019 capital expenditures plan to $2 billion from $2.5 billion."What tariffs have done in some businesses is cause a little bit of a pause, a little bit of reluctance…Chinese purchasers to maybe buy American goods," said Fitterling in a Bloomberg TV interview. "That shifts some of the demand around."Fitterling is optimistic a trade deal will get done, he just doesn't see that deal coming to fruition before the end of this year. Without the U.S. and China making nice on trade, it's hard to get involved with a stock like Dow.Additionally, analyst sentiment is sour on Dow stock. While analysts are not right or wrong 100% of the time, there's often similar actions from the sell side in a condensed period of time. Since late July, there have been five downgrades of Dow stock by four different analysts, moves that also included several lower price target revisions.Last week, Bank of America Merrill Lynch analyst Steve Byrne pared his rating on Dow stock to "underperform" from "neutral," his second downgrade of the name in less than a month, while trimming his price target to $41 from $55. Byrn cited "eroding fundamentals" in his downgrade of Dow stock.Thing is, the average price target on Dow stock is just over $56 while the shares closed around $43 on Tuesday, Aug. 20. Make of that what you will, but that could be a sign more bearish price target revisions are coming because analysts like to save face. Bottom Line on DOW StockFor patient, risk-tolerant investors, there are some silver linings with Dow stock. At just 12x forward earnings, the shares are by no means expensive and there is compensation for the risk in the form of a dividend yield north of 6%. That's more than triple what you get on the S&P 500.And there's one more silver lining: some insiders recently bought Dow stock, something they wouldn't be doing if they believed a recession is imminent. After all, insiders only buy their company's shares for one reason: because they think the stock is going up.Todd Shriber doesn't the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Dow Stock a Downer Until Tariff Talk Subsides appeared first on InvestorPlace.
The chemical industry heavyweight is gone, and DuPont and Dow are officially back -- but very different. Here's how to keep track of the new companies.
On CNBC's "Mad Money Lightning Round," Jim Cramer said he is not against owning Alibaba Group Holding Ltd - ADR (NYSE: BABA ). He thinks that business is quite good. Cramer likes Automatic Data ...
(Bloomberg) -- The serial dealmaker running DuPont de Nemours Inc. is gearing up for another $20 billion-plus divestment that could become one of the chemical industry’s biggest transactions this year.DuPont Chairman Ed Breen is considering unloading the company’s nutrition and biosciences business, one of its fastest-growing divisions, according to people familiar with the matter. A sale would extend a dramatic overhaul of DuPont’s portfolio as it looks to salvage shareholder value in the face of slowing markets and the U.S.-China trade war that has crimped growth.DuPont’s current incarnation resulted from the breakup of DowDuPont, the chemical giant created in a 2017 deal that was the chemical industry’s biggest merger of all time. It’s since spun off its Corteva Inc. agriculture business, which is now worth $22.5 billion as a standalone entity.A divestment of the nutrition and biosciences division -- which makes food additives and ingredients -- could help unlock more value for Wilmington, Delaware-based DuPont, which had a market capitalization of $51 billion at Tuesday’s close. The company is now working with advisers to evaluate options for the unit including a potential sale or spinoff, the people said. More SpinoffsIt is also considering a so-called Reverse Morris Trust, a merger with another company structured to be tax-free. Logical partners for that kind of deal could include Royal DSM NV, Kerry Group Plc, Givaudan SA and International Flavors & Fragrances Inc., the people said. Some of the suitors have lined up advisers for potential bids, the people said.The nutrition and biosciences unit, which has more than 10,000 employees, specializes in products from sweeteners and emulsifiers to dairy cultures and dietary fibers. DuPont has seen particular strength in areas such as plant-based meats and probiotics.The division could be worth at least $20 billion on its own based on rivals’ trading multiples, the people said. Its revenue rose 14% last year to $6.8 billion, making it DuPont’s fastest-growing business after the industrial intermediates and infrastructure division, according to data compiled by Bloomberg.M&A PlaybookDuPont is in the early stages of the review and may opt to not proceed with a divestiture, the people said. It also hasn’t started holding any formal talks with potential suitors yet, they said. Representatives for DuPont and International Flavors declined to comment. Representatives for DSM, Kerry and Givaudan weren’t immediately available for comment.Analysts have suggested DuPont’s chairman may run a similar playbook for the company as he did when breaking apart DowDuPont. A serial dealmaker, Breen also engineered the breakup of Tyco International Plc. DuPont has already earmarked for sale six “non-core” businesses with a combined $2 billion in annual sales, including a unit that makes solar-panel materials, and Breen has said he would consider more moves.DuPont has four major divisions big enough to stand on their own, and it could sell or spin major business units including nutrition or electronics and imaging, Breen said at an industry conference in May. For tax reasons, DuPont can’t begin holding any talks with other companies until after the two-year anniversary of the combination that created its predecessor, he said. Dow and DuPont completed their merger on Aug. 31, 2017.If DuPont succeeds in divesting the nutrition division, it would be left with businesses focused on materials for industries such as transportation, electronics and construction.\--With assistance from Myriam Balezou and Aaron Kirchfeld.To contact the reporters on this story: Kiel Porter in Chicago at email@example.com;Dinesh Nair in London at firstname.lastname@example.org;Richard Clough in New York at email@example.comTo contact the editors responsible for this story: Brendan Case at firstname.lastname@example.org, ;Liana Baker at email@example.com, Ben Scent, Amy ThomsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Industrial materials maker DuPont is considering a sale of its nutrition and biosciences unit, Bloomberg reported on Tuesday, citing people familiar with the matter. The unit, which supplies everything from soy-based food ingredients to tablet binders, could be worth at least $20 billion as a standalone entity, Bloomberg said https://www.bloomberg.com/news/articles/2019-08-06/dupont-is-said-to-weigh-divestiture-of-nutrition-and-biosciences. DuPont declined to comment on the unit's divestiture.
Among the Philadelphia region’s largest 20 publicly traded companies, three in the chemical industry experienced the biggest dips in midday trading.
Corteva shares jumped 5.9% to $31.25 on Thursday even as it reported quarterly profit was more than halved due to costs related to the DowDuPont breakup. The Wilmington, Del., company, formerly the agricultural unit of DowDuPont, reported second-quarter net income fell to $470 million, or 63 cents a share, from $963 million, or $1.
DuPont de Nemours (NYSE: DD ) reported second-quarter earnings of 97 cents per share, which beat the analyst consensus estimate of 82 cents by 18.29%. This is a 29.2% decrease over earnings of $1.37 per ...
Pesticide and insecticide maker Corteva Inc's quarterly profit beat estimates as volumes and prices in its international markets rose more than expected, sending its shares up more than 8%. Investors cheered Corteva's upbeat numbers, its first after separation from DowDupont in June, as they were a rare bright spot among agricultural companies that have been hard hit as floods ravaged huge swathes of western Corn Belt states. Chief Executive James Collins, on a post-earnings call with analysts, said the unprecedented market backdrop for the second quarter presented considerable challenges to Corteva's customers and in turn, to the company.
Materials company DuPont de Nemours Inc. said Thursday it had a net loss of $571 million, or 76 cents a share, in the second quarter, after earnings of $1.769 billion, or $2.27 a share, in the year-earlier period. Adjusted per-share earnings came to 97 cents, ahead of the 89 cents FactSet consensus. Sales fell 7% to $5.5 billion, below the FactSet consensus of $6.021 billion. "In the face of weaker than expected market conditions, our teams delivered on our bottom-line commitments by driving both cost and pricing actions resulting in operating EBITDA(1) margin improvement of 170 basis points in the quarter," Chief Executive Marc Doyle said in a statement. DuPont merged with Dow Chemical in 2015, before again breaking into separate Dow and DuPont companies, as well as spinning out its agricultural division into a company called Corteva. This quarter's numbers included goodwill impairment charges of $1.57 and an income tax charge of 22 cents a share, offset by the absence of 35 cents a share of costs associated with Dow and Corteva. The company raised its full-year pro forma adjusted EPS guidance to $3.75 to $3.85. Shares were down 3.5% premarket but have gained 5.5% in 2019, while the S&P 500 has gained 19%.
(DD) (ticker: DD) shares are down 5% year to date, worse than the 15% change of the Dow Jones Industrial Average over the same span. In the first quarter of 2019—when (DOW) (DOW) was still part of the company and (DD) was still called Dow (DD)—much of the focus for Wall Street was on China, as well as weakness in the automotive and electronics industries. DuPont management is focused on managing profit margins given this mild downturn.
Industrial materials maker DuPont raised its full-year profit forecast on Thursday as it plans to cut costs to combat the impact of slowing demand in the electronic and automotive sectors due to the U.S.-China trade war. The ongoing trade war between two of the world's largest economies and weakening car and smartphone sales globally have hurt companies like DuPont that supply components to a range of industries and supply chains. DuPont, one part of conglomerate DowDupont until a split earlier this year, now expects 2019 proforma adjusted profit to range between $3.75 and $3.85 per share, compared with its prior expectation of $3.70-$3.85.