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Analyzing DuPont’s Stock Performance in 2017

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DuPont’s stock performance

So far, DuPont (DD) had a decent performance in fiscal 2017. As of February 15, 2017, DuPont rose 6.2%, but it underperformed its peers Dow Chemical (DOW), Eastman Chemical (EMN), and LyondellBasell (LYB). They have returned 6.8%, 7.5%, and 8.5%, respectively. However, DuPont managed to outperform the broader market representative the SPDR S&P 500 (SPY). SPY returned 5.1% during the same period. It tracks the S&P 500 Index (SPX).

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Gains in DuPont’s stock price are influenced by good 4Q16 earnings. The gains are supported by the bullish market in the US. The merger between Dow Chemical and DuPont is expected to be completed in 2Q17. The deal is still being reviewed by EU regulators. At the beginning of February, Dow Chemical sold some of its business to accommodate regulatory approval for the proposed merger.

Moving average and relative strength index

With DuPont stock continuing to rise, DuPont is trading 8.1% above its 100-day moving average of $72.10. The movement indicates the stock’s upward trend. DuPont’s 52-week low is $57.76, while its 52-week high is $78.09. Analysts’ consensus indicates a 12-month price target of 82.45. It implies a potential return of 5.8% from the closing price of $77.94 on February 15, 2016.

The stock’s 14-day RSI (relative strength index) of 66 indicates that it isn’t oversold or overbought. An RSI of 70 means that a stock has moved temporarily into an overbought situation, while an RSI of below 30 indicates that a stock has moved temporarily into an oversold position.

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