On Financial Tides I started looking for a good S&P 500 stock to review. I use Barchart to screen for the S&P 500 stock with the best relative price strength and good old Du Pont (DD) rose up near the top of the list.
E.I. DuPont de Nemours is involved in science and technology in a range of disciplines including high-performance materials, specialty chemicals, pharmaceuticals and biotechnology. The company operates globally through strategic business units. Within the strategic business units, businesses manufacture and sell a wide range of products to many different markets, including the transportation, textile, construction, automotive, agricultural and hybrid seeds, nutrition and health, pharmaceuticals, packaging and electronics markets.
The stock hit new highs in of the 12 last 20 trading sessions and was 4 for 5 recently. The last 30 days has shown a 13.30% increase in price. Barchart's technical indicators have 13 out of 13 indicators signaling a buy signal for an overall 100% Barchart rating.
There is a very large Wall Street analysts following with 5 buy and 10 hold recommendations. The analysts consensus is of an increase in sales of 13.1% this year and 6.3% next year. They predict that earnings increases of 15.3% this year and 14.5% next year are possible. They estimate that the EPS growth will be 8.5% a year for at least the next 5 years.
Over on Motley Fool the CAPS members think the stock will outperform the market by a vote of 1388 to 93 with the All Stars in agreement 409 to 15. The Wall Street journalist Fool follows are also favorable 17 to 1.
You might want to keep your powder dry with this one:
- Recent and consistent price momentum
- Large Wall Street following with predicted increases in sales and earnings
- Very positive investor sentiment
The stock can be purchased around 38.50 and has a 50 day moving average at 34.
As always, do your due diligence to see if this is a risk you'd like to assume.
Disclosure: No position in DD at the time of publication