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CNBC’s Jim Cramer said on Wednesday he believed shares of DuPont de Nemours were trading at an attractive level, suggesting investors take a position in the specialty chemicals maker.
“DuPont just declared a good quarter and its stock did nothing because Wall Street just doesn’t get the story, so they don’t give the company enough credit for the fact that [CEO] Ed Breen’s strategy is paying off, “said the host of” Mad Money “.
“With this stock currently trading at 17 times this year’s profit forecast, I consider DuPont a good deal,” Cramer added, a day after DuPont exceeded quarterly Wall Street expectations and increased its forecast. annual sales, operating EBITDA and adjusted earnings per share.
Cramer said he believes DuPont shares would have added at least a dollar after this reporting caliber under normal circumstances, but instead, the stock fell on Tuesday. It also fell 0.17% on Wednesday to close at $ 74.26.
“What’s the matter? I think Wall Street doesn’t understand at all that there is a new DuPont. This thing trades like it’s just some kind of basic materials or basic chemicals game,” that’s why it’s still trading well below its early May highs… even though the story just keeps getting better, ”Cramer said.
DuPont has strong leadership with Breen at the helm, Cramer said, and he argued that the company’s product offerings are more proprietary than some other materials stocks. Under Breen’s leadership, DuPont also exited non-core businesses and made smart acquisitions in key end markets.
Cramer said this was the reason his charitable trust owned shares in DuPont, which was part of the larger DowDuPont before its business was split into three independent parts: DuPont, Dow Inc. and Corteva.
“In short, this is a better quality business than Wall Street seems to recognize,” Cramer said, adding that he wanted viewers “to see the opportunity in the industrial trash before it goes. disappears “.
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