Stock price when the opinion was issued
They just finished a $3.25 billion share buyback and will start a $2 billion one. They've retired 7.6% of their shares so far this year. All told they will reduce shares by 13.5%, the 3rd-biggest buyback on the S&P 500. If you feel interest rates will continue to rise, Dupont is too risk; Dupont has some cyclicality because it's exposed to autos. Overall, he likes Dupont.
In the current market it is hard to determine how much of the recent drop was China related, or market related. It is not good news, and the stock is down 24% YTD. It is also, of course, sensitive to the economy, which has gone from hot to cool to maybe cold. Good earnings growth is expected based on estimates, and even if this comes down a bit there should still be some earnings growth. We think it is cheap enough to hold through the current cycle. It may stay volatile in the short term, along with pretty much everything else.
Unlock Premium - Try 5i Free