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    Analytical review of the stocks of E. I. du Pont de Nemours and Company

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

    Financial performance of the company:

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

    Analytical review:

    • The company ranks the first on capitalization in the sector of “Agricultural chemicals” among the issuers traded in the American stock market.
    • At the end of the company issued report for Q1 of the fiscal year 2016. According to the press-release, company’s revenue has dropped by 5.5% to 7.41 billion USD. In the reporting period company’s net profit amounted to 1.26 USD per share against 1.34 USD for the same period a year ago. However, this result has exceeded market expectations, as the forecast of the revenue was at the level of 7.19 billion USD and EPS (earnings per share) was 1.04 USD.
    • At the press-conference company’s management stated that the results of the company had exceeded market expectations due to cost cutting program and restructuring of business. This year the company plans to cut expenses by 730 million USD.
    • The company has the best rates of profitability of capital and investments among the closest competitors and generally in the industry. Return on investment amounts to 6.18%. Return on equity exceeds 18%. Average indicators in the industry are 4.59% and 4.79% respectively.
    • The company issued revised forecast for the fiscal year of 2016. E. I. du Pont de Nemours and Company is in the process of merging with Dow Chemical Co (#DOW.NYSE). It is expected that operational profit of the company will rise up to 3.05-3.20 USD per share against previously expected rise of 2.95-3.10 USD per share.

    Summary:

    • Despite the decline in revenue and net profit, company’s financial performance was better than expected. Company has strong growth potential. Successful implementation of the restructuring and revised forecast for the current year will boost the rise in the price of the company.
    • It is likely that in the near future company’s quotes will go up.

    Trading tips for CFD of E. I. du Pont de Nemours and Company

    Key levels:
    Support levels: 63.75 USD, 62.45 USD and 61.75 USD.
    Resistance levels: 64.65 USD, 66.00 USD and 67.70 USD.

    Medium-term trading, Н1:

    At the moment the issuer is traded in the demand zone of 63.75-64.65 USD. If the price maintains this zone and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 65.90 USD, 67.50 USD and 69.00 USD with the use of trailing stop.


    Analytical review of the stocks of E. I. du Pont de Nemours and Company

    Short-term trading М15:

    Currently the issuer is traded between the local support and resistance levels of 63.75/64.55 USD. It is advisable to enter the market after breaking out and testing of these levels. Positions can be opened towards the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.


    Analytical review of the stocks of E. I. du Pont de Nemours and Company

     

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