Can DuPont Stock Rebound After A 13% Drop In 10 Days?

February 12th, 2021 by Trefis Team

The stock price of DuPont de Nemours Inc. (NYSE:DD) has seen a 9% decline over the last five trading days, while it is down 13% over the last ten trading days, and we believe the stock will likely rebound from the current levels in the near term. The decline can largely be attributed to profit booking at higher levels after the company announced its Q4 results. Note that the DD stock rallied roughly 50% from levels of under $60 in mid August 2020 to over $85 in mid-January 2021, before dropping to $73 currently. The outperformance can be attributed to M&A arbitrage related to the IFF deal. IFF recently completed the previously-announced merger of IFF and DuPont’s Nutrition & Biosciences business, in a Reverse Morris Trust transaction. Last month, some of the brokerages downgraded the stock from “Buy” to “Hold” after a strong rally. That said, the stock has now corrected 15% from its recent highs, and its Q4 earnings of $0.95 per share were better than the consensus estimates of $0.89. Not only did the company beat in Q4, DuPont’s guidance for 2021 was also above the consensus estimates.

The 9% drop for DD stock compares with 1% gains seen in the broader S&P 500 index. Now, after the recent drop, we believe that DD stock is poised to gain in the near term, given its upbeat guidance.  In fact, we believe that there is a 74% chance of a rise in DD stock over the next month (twenty one trading days) based on our machine learning analysis of trends in the stock price over the last few years. See our analysis on DuPont Stock Chances of Rise for more details. Curious about the possibility of rising over the next quarter? Check out the DD Stock AI Dashboard: Chances Of Rise And Fall for a variety of scenarios on how DD stock could move.

Five Days: DD -8.7%, vs. S&P500 1.2%; Underperformed market

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(3% likelihood event)

  • DuPont stock declined 8.7% over a five-day trading period ending 2/11/2021, compared to broader market (S&P500) rise of 1.2%
  • A change of -8.7% or more over five trading days is a 3% likelihood event, which has occurred 41 times out of 1256 in the last five years

Ten Days: DD -13%, vs. S&P500 3.5%; Underperformed market

(3% likelihood event)

  • DuPont stock declined 13% over the last ten trading days (2 weeks), compared to broader market (S&P500) rise of 3.5%
  • A change of -13% or more over 10 trading days is a 3% likelihood event, which has occurred 43 times out of 1240 in the last five years
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