DowDuPoint…Guilty By Association

The threat of a global slowdown looms, due mostly to tough trade negotiations between the U.S. and China. And as usual, markets price stocks with the forward valuations in mind.

Already, resource stocks are down in anticipation of slower economic activity ahead. Some companies tried to head off the decline in stockholder value by splitting up their units to realize the value of the parts. DowDuPont (DWDP – Get Report) split off Dow on April 1 but its shares keep falling.

DowDuPont dipped suddenly in the last month, potentially due to nervousness over the reverse share split. More likely, markets are over-reacting to the unusually weak first-quarter report. This creates an opportunity for investors who are willing to bet that the next quarter and the full year results will improve from here.


DowDuPont is part of the SPDR Materials sector and according to

SPDR Sector Relative Strength Analysis Report For Week Starting 5/27/19

the SPDR Material sector ranks dead last and has ranked dead last for weeks/months.

The article went on to discuss 12 analysts who cover the stock, that the average price target is $43.83.  However, the chart suggests there is further declines which started back in January of 2018.

Down to the $28 level with a final target down to $17.50.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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