DuPont: Macro Pressures Persist, Q3 Guidance Could Be Weak (Rating Downgrade)

DuPont remains undervalued, but I move from Strong Buy to Buy due to Q3 guidance concerns and currency headwinds. Q2 is expected to deliver a small beat, driven by strong healthcare and aerospace, though construction market softness persists in Diversified Industrials. DD's recent $275M accelerated share repurchase signals management's conviction in undervaluation, supported by robust EPS growth and margin expansion. Despite impressive earnings growth, risks remain in business technologies and water segments, and broad-based growth is needed for multiple expansion.

DuPont ( DD ) is slated to report in just under a month's time, which prompts a refresher on the name and a preview of what's to come.