30.69 -0.28 (-0.90%)
Pre-Market: 9:22AM EDT
|Bid||30.51 x 900|
|Ask||30.90 x 3100|
|Day's Range||30.39 - 31.31|
|52 Week Range||30.06 - 48.37|
|Beta (3Y Monthly)||1.15|
|PE Ratio (TTM)||21.93|
|Forward Dividend & Yield||1.28 (3.33%)|
|1y Target Est||43.38|
In a market near all-time highs, chemical stocks look like a potential source of value. Shares of top chemical companies still look reasonably cheap, with many priced at a mid-teen -- or lower -- multiples to earnings and free cash flow.That said, there are some reasons why the sector appears cheap. Chemical stocks are notoriously cyclical, even those of the top chemical companies. That goes double for specialty manufacturers with narrow portfolios and/or those exposed to input costs of volatile commodities (among them oil). Earnings in the industry often don't grow in a straight line. Rather, some sort of choppiness is the norm, which dissuades some investors from entering the space at all. * 6 Chinese Stocks That Could Pop On a Trade Deal But there are some attractive stocks to buy in the space. The U.S. economy is strong, with no sign of imminent slowdown.Commodity costs are reasonably stable. And -- again -- valuations are cheap. Here are five chemical stocks to buy that look particularly intriguing, though not always for the same reasons.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Chemical Stocks to Buy: DowDuPont (DWDP)Source: Shutterstock DowDuPont (NYSE:DWDP) is one of the top chemical companies in the world. In fact, it's the global leader in sales. And yet DWDP stock doesn't appear to be getting much respect at the moment.DWDP trades at just 14.5x forward earnings, and there is value to be unlocked from the merger between Dow Chemical and DuPont. DWDP is spinning off three companies, leaving a specialty products business to be renamed DuPont.It's possible, if not likely, that the uncertainty around those decisions is holding down the DWDP share price. But the smart money seems to see quite a bit of value in the stock. The average Wall Street target price of $44 suggests about 43% upside, and 46%, including a 3%+ dividend yield, making it a good stock to buy. Chemical Stocks to Buy: Albemarle (ALB)Source: fdecomite via Flickr (Modified)The case for Albemarle (NYSE:ALB) is pretty simple. The world's biggest lithium producer presents a derivative play on the growth of electric vehicles like those produced by Tesla (NASDAQ:TSLA), as Larry Ramer argued earlier this year. Lithium is a key input for EV batteries, and Albemarle should benefit from increasing demand going forward.That case actually has been a negative so far in the past year. ALB stock is down by a third over the last 52 weeks. Analysts have expressed some concerns about potential oversupply, and rival Sociedad Quimica y Minera de Chile (NYSE:SQM) has said it will take Albemarle's No. 1 market share position within four years.Still, the selloff appears overdone. Like DWDP, analysts see big upside at ALB, with the consensus target implying nearly 50% gains. ALB's lithium business is growing in the near term, and it should have years of similar growth ahead, even if SQM does take share. * 6 Chinese Stocks That Could Pop On a Trade Deal Also consider that a forward price-to-earnings ratio of ten suggests its valuation is reasonable at worst, and so does an aggressive $500 million share repurchase program implemented last year. With TSLA stock struggling, Albemarle looks like a more reasonable, and potentially more attractive, play on the growth of electric vehicles, making it an attractive stock to buy. Chemical Stocks to Buy: W.R. Grace (GRA)Source: Shutterstock W.R. Grace (NYSE:GRA) has basically stalled out for the past few years. The company's spin-off and combination with Sealed Air (NYSE:SEE) hasn't helped the stock. Nor has solid growth, and a steady drumbeat of strong earnings reports (Grace has beat consensus on the top- and bottom-lines for seven straight quarters).At this point, though, that's not necessarily a bad thing. GRA always looked like one of the top chemical companies, but with a stock that traded at a questionable price … that's no longer the case. The forward P/E multiple has dropped below 15x, mostly in line with the sector.The company's exposure to gasoline, through its FCC (fluid catalytic cracking) business, does raise a risk, particularly for investors betting on exponential growth in electric vehicles. But GRA is well-managed, cheap and as I wrote in July 2018, an oft-cited takeover target. The past few years have been disappointing for GRA shareholders, but the next few might be much better. Chemical Stocks to Buy: H.B. Fuller (FUL)Source: Shutterstock H.B. Fuller (NYSE:FUL) already has had a nice run. Shares have risen about 30% from 2015 lows. But there's reason to see more upside ahead.Fuller is one of the leaders in the global adhesives market, competing with 3M and Germany's Henkel (OTCMKTS:HENKY), along with a myriad of smaller producers. Its 2017 acquisition of Royal Adhesives added to its scale and market share, while also boosting profits by nearly 50%.Management has set aggressive growth targets for 2020, backed by acquisition synergies, cost-cutting and a shift-toward higher-growth, value-added products. If Fuller can get to those targets -- or close -- there's easily double-digit annual returns on the way. * 6 Chinese Stocks That Could Pop On a Trade Deal Longer-term, the adhesives business is an attractive one. It's less cyclical than many other chemical end markets, and one where Fuller can continue to build and acquire market share to drive growth. At ~11x EBITDA and ~17x earnings, not all of Fuller's potential looks priced in. Chemical Stocks to Buy: Tronox (TROX)Source: Shutterstock Tronox (NYSE:TROX) is a stock only for investors with high tolerance for risk, as proven by the stock's multi-year chart. TROX traded above $35 in 2012; it was below $5 at the beginning of 2016. From there, the stock ran to $27, and now it trades below $11.A key reason is the company's reliance on titanium dioxide (TiO2) pigment, used in paints, plastics and other applications. TiO2 prices are notoriously volatile, which leads to swings in TROX earnings. Add on a reasonable amount of debt, steady M&A activity (including the sale of a business last year and the pending acquisition of another at the moment) and mining activity, and the volatility in TROX stock makes some sense.But it may also provide an opportunity. TROX trades at just five times next year's earnings-per-share estimates (though investors can't count 100% on the accuracy of any projections in such a fluid market).Again, this is not a stock for the faint of heart. It's a high-risk, high-reward play. But at a cheaper price, and with more certainty coming at some point in the next twelve months, there is a path for TROX stock to rebound nicely.As of this writing, Vince Martin did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post 5 Top Chemical Stocks to Buy appeared first on InvestorPlace.
Moody's Investors Service ("Moody's") assigned Baa2 ratings to unsecured notes to be issued by The Dow Chemical Company. "Dow is taking advantage of relatively low interest rates to refinance its term loan and other near-term maturities," stated John Rogers, Senior Vice President at Moody's and lead analyst on Dow.
DowDuPont’s agricultural business, due to be separated on June 1, acknowledges times have been tough in farming lately, but it sees better days ahead. How Corteva stock might trade remains a mystery.
FrontFour Capital Group was launched back in 2006 as an employee owned hedge fund sponsor. It mainly provides its services to pooled investment vehicles and utilizes an event-driven and opportunistic strategy. The fund's headquarters are in Greenwich, Connecticut and currently is run by David Lorber, Stephen Loukas, and Zachary George. Mr. David A.Lorber, one of […]
WILMINGTON, Del. , May 16, 2019 /PRNewswire/ -- DowDuPont announces that the board of directors of its subsidiary, E. I. du Pont de Nemours and Company, declared regular quarterly dividends of $1.12 -1/2 ...
WILMINGTON, Del., May 15, 2019 /PRNewswire/ -- DowDuPont (DWDP) today announced that Nicholas C. (Nick) Fanandakis will retire as Executive Vice President effective July 31. Mr. Fanandakis is a 40-year DuPont veteran, who served as the company's CFO through 2017, when E.I. du Pont de Nemours and Company merged with The Dow Chemical Company.
High-value mergers among global or domestic business corporations have always attracted attention and spawned case studies as they have interesting implications for business development. A well-executed merger allows for higher returns for investors in the form of higher shareholder value, reduced operational costs for corporations, and increased revenue and sales. Through M&A, companies look for more diversification in their offerings, augmented production capacity, increased market share, and better utilization of operations.
WILMINGTON, Del., May 14, 2019 /PRNewswire/ -- DuPont today announced a new, comprehensive parental leave policy that offers four weeks of paid leave for new parents, including adoptive and same-sex parents. For birth mothers, the four paid weeks are in addition to an enhanced paid maternity leave which has been extended to 12 weeks. The policy applies new global minimum leave benefits, ensuring all employees receive at least these levels.
WILMINGTON, Del. , May 14, 2019 /PRNewswire/ -- James C. Collins, Jr. , Chief Executive Officer-elect of Corteva Agriscience, Agriculture Division of DowDuPont (NYSE: DWDP), will present at the BMO Capital ...
Corteva, the agricultural business of (DWDP) that will begin trading on stock exchanges in a few days, has already won over at least one Wall Street analyst. Nomura analyst Aleksey Yefremov thinks Corteva management did a good job explaining the company’s pathway to higher profits in coming years. The era of the chemical megacompany DowDuPont (ticker: DWDP) is nearly at an end.
Corteva is the combination of two legacy agricultural franchises. The new company met with analysts in Iowa to try to help investors answer the question: What is it worth?
DEEP DIVE U.S. stocks declined for a fourth straight trading session Thursday after President Trump said China’s government “broke the deal” on trade. The Dow Jones Industrial Average (DJIA)fell as much as 450 points (1.
WILMINGTON, Del., May 9, 2019 /PRNewswire/ -- Corteva Agriscience™, Agriculture Division of DowDuPont (DWDP), will host a meeting with investors and analysts today in Johnston, Iowa at 8:00 am CT / 9:00 am ET. At the meeting, James C. Collins, Jr., Chief Executive Officer-elect of Corteva Agriscience™, and other members of the senior leadership team will review the company's progress, strategy and key priorities for value creation. The presentations will include an in-depth view of recent product launches, progress toward a best-in-class cost structure, and expectations for pipeline performance. "As we rapidly approach our launch as an independent pure-play agriculture company, we are confident our competitive advantages put us on a solid path to deliver above-market growth," said Jim Collins.
California regulators move to ban chlorpyrifos, a controversial pesticide used on almond, citrus and grape crops in the nation's largest agricultural state. California follows Hawaii and New York, which have announced similar moves against chlorpyrifos. The Trump administration has resisted attempts to ban the chemical that environmentalists say is harmful to children and farmworkers.
Corteva, the combined agricultural divisions of Dow and DuPont, will meet with analysts and investors in Iowa ahead of its spinoff at the beginning of June.
WILMINGTON, Del., May 7, 2019 /PRNewswire/ -- Corteva, Inc. today announced that the U.S. Securities and Exchange Commission has declared effective Corteva's Registration Statement on Form 10. The Form 10 includes information regarding the business, strategy and priorities for Corteva, as well as details about the spin-off by DowDuPont Inc. of Corteva, which is expected to be completed on June 1, 2019. The Form 10 can be found on DowDuPont's website at http://www.dow-dupont.com/investors/default.aspx. Corteva Agriscience is well positioned to drive long-term value for shareholders as we leverage our balanced portfolio and robust innovation pipeline to deliver the complete solution farmers need to maximize yield and profitability," said James C. Collins Jr., Corteva's Chief Executive Officer.
WILMINGTON, Del., May 7, 2019 /PRNewswire/ -- DowDuPont (DWDP) today announced that its Board of Directors has approved the previously announced separation of DowDuPont's Agriculture Division, which will become Corteva Agriscience™ on June 1, 2019. To effect the separation, the DowDuPont Board of Directors declared a pro rata dividend of all of the outstanding shares of common stock of Corteva, Inc. ("Corteva"). The dividend is expected to be paid on June 1, 2019 to DowDuPont stockholders of record as of the close of business on May 24, 2019, the record date.
Global equities are again being hit hard on Tuesday as the uncertainty over the trade war with China continues. With a delegation from Beijing due this week, and Trump threatening to raise tariffs on Friday without an agreement, this is set to be a high stakes standoff.And this comes after months of breathless leaks to the media about all the positive progress being made towards an agreement. * 7 Strong Buy Stocks That Tick All the Boxes Stocks are likely to continue heading lower unless Beijing folds under pressure. Which seems unlikely. As a result, a number of market heavyweights are suffering breakdowns. Here are four mega-cap stocks to sell:InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cisco Systems (CSCO) Click to EnlargeShares of Cisco (NASDAQ:CSCO) are breaking down below their 50-day moving average for the first time since the middle of December. Watch for a return to its 200-day moving average, which would be worth a decline of roughly 11% from here. This comes despite the recent announcement of a $15 billion increase in its share buyback program.The company will next report results on May 15 after the close. Analysts are looking for earnings of 77 cents per share on revenues of $12.9 billion. When the company last reported on February 13, earnings of 73 cents per share beat estimates by a penny on a 4.7% rise in revenues. DowDuPont (DWDP) Click to EnlargeShares of chemical maker DowDuPont (NYSE:DWDP) are breaking down out of a six-month consolidation range, returning to levels last seen in late 2016. This marks a 34% decline from the highs seen in early 2018. * 7 Stocks Worth Buying When They're Down The company will next report results on August 1 before the bell. Analysts are looking for earnings of 82 cents per share on revenues of $11.5 billion. When the company last reported on May 2, earnings of 84 cents per share beat missed estimates by a penny on an 8.7% decline in revenues. International Business Machines (IBM) Click to EnlargeIBM (NYSE:IBM) shares are weakening after trying to stabilize below its 50-day moving average, setting up a test of its 200-day average that will likely give way to a fill of the January gap move higher. Such a decline would be worth a loss of nearly 10% from here as investors continue to wonder if the company will ever again post sustained revenue growth.Management will next report results on July 17 after the close. Analysts are looking for earnings of $3.10 per share on revenues of $19.2 billion. When the company last reported on April 16, earnings of $2.25 beat estimates by a penny on a 4.7% decline in revenues. Nike (NKE) Click to EnlargeNike (NYSE:NKE) shares are falling out of a four-month consolidation range, setting up a drop back to the October-December highs, which would be worth a loss of more than 6% from here. While the stock was able to set an incremental new high, prices have been centered on the $80-a-share level since the summer of 2018. That range looks set to continue despite a recent upgrade from analysts at Citigroup. * 6 Growth Stocks to Buy for the Rest of 2019 The company will next report results on June 27 after the close. Analysts are looking for earnings of 66 cents per share on revenues of $10.2 billion. When the company last reported on March 21, earnings of 68 cents per share beat estimates by three cents on a 7% rise in revenuesAs of this writing, the author held no positions in the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Strong Buy Stocks That Tick All the Boxes * 7 Stocks to Buy From the T. Rowe Price Health Sciences Fund * 5 Tech ETFs to Plug In to Big Profits Compare Brokers The post 4 Mega-Cap Stocks to Sell Before They Melt Down appeared first on InvestorPlace.
DowDuPont shares have plummeted 12% since the company reported earnings. Based on Wall Street reports, it is difficult to figure out why. Barron’s thinks we know: It was spinoff hype.
CHICAGO, May 7, 2019 /PRNewswire/ -- Corteva Agriscience™, Agriculture Division of DowDuPont, today announced a two-year agreement to support the efforts of The Nature Conservancy (TNC) to help farmers grow food more sustainably, while protecting water quality. "We are driven to enrich the lives of those who produce and those who consume," said Dana Bolden, Senior Vice President of External Affairs and Chief Sustainability Officer, Corteva Agriscience™. "Every day, our team members see firsthand the commitment farmers have to being good stewards of the land.
DEEP DIVE President Trump’s weekend threat to raise tariffs on $200 billion in annual imports from China to 25% from 10% rattled U.S. stocks Monday, following broad declines in Asia and Europe. It may well be a typical negotiating tactic by the president, and the narrative may change before Trump’s new Friday deadline.