DuPont Stock Ready to Roar?
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.”