Has DuPont’s Stock Performance Retreated?
DuPont’s stock performance
DuPont’s (DD) stock price remained flat with a marginal gain of 0.6% from December 1, 2016, to January 11, 2017. DuPont has been trading sideways and remained range bounded. For the same period, DuPont’s peers like Dow Chemical (DOW) and Eastman Chemical (EMN) outperformed it with gains of 4.60% and 5.30%, respectively. Dupont also underperformed the broader market representative the SPDR S&P 500 ETF (SPY)—it returned 3.0%. The only exception was LyondellBasell (LYB)—it underperformed DuPont and fell 2.1% for the same period.
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DuPont’s lackluster performance could be because of uncertainties prevailing over the Dow Chemical-DuPont merger. Currently, the matter with the European Union antitrust regulator. European Union regulators were expected to provide formal objections to the merger in December. So far, an update isn’t available.
Moving average and relative strength index
Although DuPont stock is consolidating at its current levels, it’s trading 5.1% above the 100-day moving average price of $74.03. It indicates the stock’s upward trend. DuPont’s 52-week low is $50.88, while the 52-week high is $75.86.
The 14-day RSI (relative strength index) of 54 indicates that the stock isn’t oversold or overbought. An RSI score of 70 means that a stock has moved temporarily into an overbought situation, while an RSI score below 30 indicates that a stock has moved temporarily into an oversold position.
In the next parts of this series, we’ll discuss how DuPont’s pension plans benefit from the rise in interest rates, analysts’ latest recommendations, and its most recent valuations.