2016-08-25 12:27:10

E. I. du Pont de Nemours and Company, #DD [NYSE]
Raw materials, agricultural chemicals, USA

Financial performance:

Index –DJIA, S&P 500; Beta – 1.82;
Capitalization - 54.77 В; Assets profitability - 6.80%;
Revenue - 1.95 B; Average volume – 5.27 М;
P/E - 30.06; ATR – 1.54.

Analytical review:

  • The Company has the biggest capitalization in the sector of agricultural chemicals among the issuers listed on the US stock market.
  • The "raw materials" sector dropped 0.6% last week. At the same time, E. I. du Pont de Nemours and Company's stock traded upwards and edged up over 3.5%. The issuer may continue growing thanks to its positive corporate report.
  • According to the latest report on the second quarter of the fiscal year 2016, the company's revenue amounted to 7.061 billion USD, which slightly exceeds market expectations of 7.048 billion USD. The company's net profit amounted to $1.24 per share against market expectations of $1.10 per share.
  • The agricultural giant is currently merging with the biggest chemical corporation Dow Chemical (NYSE: #DOW). The latter ranks high based on profitability, net profit margin, and operating profit margin. The assets of E. I. du Pont de Nemours and Company and Dow Chemical are estimated at 130 billion USD. The merger is expected to be completed by the end of 2016.
  • More than 65% of the company's stock belongs to institutional investors. The biggest shareholders are Vanguard Group (6.40%) and State Street Corporation (4.42%).

Summary:

  • The latest report has consolidated investors' confidence in the company. The company's revenue and net profit exceeded analysts' forecasts. The agricultural giant's growth potential is quite significant. Major part of the Company's stock belongs to institutional funds.
  • Thus, we expect that the company's quotes will be rising in the nearest future.

Trading tips for E. I. du Pont de Nemours and Company's CFDs

Key levels:
Support levels: 69.75 USD, 68.00 USD
Resistance levels: 70.85 USD

Medium-term trading, H1
The issuer is currently trading near a local resistance level of 70.85 USD. Once this level is broken and tested and relevant confirming signals appear (Price Action patterns, for example), we recommend searching for market entry points to open long positions. Risk per trade: no more than 2% of equity. Stop order shall be placed a bit below the signal line. We recommend that prospective profits should be fixed partly at the levels of 72.50 USD, 74.00 USD and 75.50 USD, with Trailing Stop applied.

Medium-term trading, H1
Medium-term trading, H1


Short-term trading, M15
The issuer is currently trading between the local support and resistance levels of 70.10/70.60 USD. We advise you to search for market entry points once these levels are broken and tested. Positions shall be opened in the direction of the signal line and the nearest support/resistance level. Risk per trade: no more than 3% of equity. Stop order shall be placed a bit above/below the signal line. Prospective profits shall be fixed partly, at 50%, 30%, and 20% of a prospective fluctuation, with Trailing Stop applied.

Short-term trading, M15
Short-term trading, M15