DowDuPont’s stock performance in 2018
So far in 2018, DowDuPont (DWDP) has remained muted and has been underperforming its peers and the broader market. As of May 29, DowDuPont has declined 10.2% YTD (year-to-date). In comparison, Monsanto (MON), LyondellBasell (LYB), and Eastman Chemical (EMN) have gained 9.1%, 1.0%, and 12.5%, respectively.
There have been volatile market conditions, prevailing geopolitical tensions, and the impact of proposed tariffs by China on US exports. DowDuPont is one of the companies that would be impacted negatively by the tariffs. DowDuPont’s Agriculture segment’s revenues declined due to delayed corn sowing in North America and Brazil. However, the spillover could help in the second quarter. All of these factors had a negative impact on the stock.
However, the continued realization of cost synergies from the merger and good revenue growth and EPS growth in the second quarter could turn the tables around for DowDuPont.
Moving averages and RSI
Weakness in the stock caused DowDuPont to trade 7.3% below its 100-day moving average price of $68.97. However, the 14-day RSI (relative strength index) of 39 indicates that the stock isn’t overbought or oversold. An RSI of 30 and below indicates that the stock temporarily moved into an “oversold position,” while an RSI of 70 and above is considered to be an “overbought” position.
Investors can hold DowDuPont indirectly by investing in the First Trust Indxx Global Agriculture ETF (FTAG). FTAG has invested 9.3% of its portfolio in DowDuPont as of May 29.