DuPont: Did the Interest Rate Hike Have a Positive Impact?
As of January 11, 2017, DuPont traded at a one-year forward PE multiple of 20.00x compared to its peers Dow Chemical (DOW) and LyondellBasell (LYB).
Analysts’ consensus indicates a 12-month target price for DuPont at $78.10—a return potential of 5.5% from its closing price of $74.03 on January 11.
DuPont (DD) offers defined benefit plans to 80% of its employees across the world along with other long-term employee benefits.
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.
On January 3, DePuy Synthes, a subsidiary of Johnson & Johnson (JNJ), entered into an asset purchase and development agreement with Interventional Spine.
On January 10, 2017, 18 brokerage companies were actively tracking 3M Company’s (MMM) stock. Among them, 44% of analysts recommended “buys” on the stock.
Currently, MMM is trading at a premium compared to HON and UTX. All three companies’ revenues have remained range-bound in the past three years.
3M (MMM) offers defined benefit plans to all its US employees and those outside the United States as a well. Overall, the company has 80 defined plans across 28 countries.
3M Company’s (MMM) stock rose 3.2% from the beginning of December 2016 to January 9, 2017. MMM’s stock is hovering near its 52-week high.
As of January 6, 2017, 22 brokerage firms were actively tracking Honeywell (HON) stock. 82% of these analysts recommended a “buy” for the stock.
As of January 6, 2017, HON was trading at a one-year forward PE multiple of 16.5x as compared to its peer United Technologies (UTX), which is trading at a one-year forward PE multiple of 17.2x.
Honeywell (HON) offers defined benefit plans that cover the majority of its employees and retirees in the United States and many other countries.
Honeywell (HON) stock rose 1.7% in December 2016. The company’s stock performance in December was muted compared to November’s returns of 3.9%.
On January 6, 2017, Axalta (AXTA) announced that it had acquired Ellis Paint Company. Axalta didn’t disclose the financial terms of the deal.
On January 5, 2017, PPG Industries (PPG) announced that it had completed the acquisition of DEUTEK, a leading Romanian paint and architectural coatings manufacturer.
On January 4, 2017, Albemarle (ALB) announced that it had issued a tender offer to repurchase debt worth $500 million.
As of January 4, 2017, Dow Chemical (DOW) was trading at a one-year forward PE multiple of 14.3x.
As of January 4, 2017, 20 brokerage firms were actively tracking Dow Chemical stock. Of these analysts, 75.0% have recommended a “buy” for the stock.
The Fed’s rate hike in December 2016 is expected to benefit DOW’s pension plan in fiscal 2017 because a higher discount rate will be applied to calculate PBO.
Dow Chemical (DOW) stock continued its upward trend in December, rising 2.7% after a 3.6% rise in November.