DuPont Stock Ready to Roar?

Thursday, 12 Jan 2012 | 6:18 PM ET
DuPont: Ready to Break Out?
Mad Money's Cramer says four of DuPont's key end markets are now perceived to be doing better and that means the stock could be ready to roar, making it a buy ahead of its quarterly report on January 24th.

With stocks, perception is reality, Cramer said Thursday. One day a stock can look pretty ugly, but a short time later it could look pretty good.

Take DuPont , for example. The specialty chemical maker’s stock had plummeted 12 percent in the last six months, as investors feared how a slowdown in two of its end-markets – autos and housing – would impact the business. In addition, the company pre-announced last month, issuing downside guidance for the fourth quarter. Overall, things just weren’t looking up.

In the last thirty days, though, DuPont experienced a parade of positives. Now sporting a 3.4 percent dividend yield, Cramer said the stock looks gorgeous. The perception has totally been turned on its head, as the housing and auto markets have bounced back. In addition, natural gas prices have plummeted, helping keep DuPont’s key raw cost down. It was also helped by a knockout quarter from rival fertilizer maker Monsanto .

“The facts, and more important, the perceptions about this business and its major end markets have changed for the better,” Cramer said. “That means it’s time for you to change your mind and get more bullish about the stock.”

  Price   Change %Change

When this story was published, Cramer's charitable trust owned DuPont.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

  Price   Change %Change


Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.