Pre: 84.24 Change:- 0.87 % change -1.02
While living in America, you still have the options of halal stocks. Earn interest-free return with DD whose price has gone 23% high in the last 3 months. The company is going well above the overall industry rate that is 14.3%. Even short-term market recommendation tool Zack Rank has ranked it #2 due to its upward trend in stock price and innovative approach in product development. There has been a winning streak for the company in the last 52 weeks. Due to robust growth, DD is competing with some of the major competitors in the market like Linde PLC (LIN) and Air Product & Chemical.
What is DuPoNT?
DuPont is an American company that was formed by the merger of 2 companies. The company was the largest chemical company before the spinoff in terms of sales. Edward D. Breen is currently the CEO of the company. The headquarters of the company is located in Wilmington, Delaware USA. The Company provides supplies for the manufacturing of photovoltaic and solar cells. In addition to this, the company also provides semiconductors and dielectrics. In the 20th century, the company developed many polymers including neoprene, Sorona, Kapton, etc.
DuPont de Nemours is well known around many countries including America, Canada, Europe, and last but not least the Middle East for providing technologically based material, solutions, and ingredients.
What makes it a halal stock?
According to the rule of Sharia, DD has passed all the screening criteria. The nature of the business is halal, debt value is 33%, interest threshold is 5% and liquidity threshold is below 33%.
Top reasons to pick DD
Other than being a sharia-compliant stock in the NYSE, the company is showing strong growth in its financial ratios and improving its operational plans. Below are some positive indicators of the DD stocks that are making it one of the best buys in the market.
- The top favoring point is the increase in the net sales of the company that has risen to 8% compared to last year, making earnings of $3,976 million in a year. This rise in sales has been well above the Zack Consensus that estimated growth of $3,811 million in a year.
- If the market estimation of the company financial performance is going well above the line, there is a strong case to invest. And this is what happens with DuPont’s: the adjusted earnings showed an upward trend of 91% in the first quarter. That is well above the estimated earnings for 77% in the first quarter.
- Market gurus are predicting a boom in the company earnings. DD is making these estimations true while improving its operations like cost synergy savings and productivity action plans.
- Building with innovation is the key and this is what DD is aiming at. The company is showing continuous improvement in its semiconductor and smartphone technology. Due to the pandemic, there has been a recovery in the automotive and industrial markets.
- Moreover, efficient financial planning by the company management has also led to an improvement in cash flows and shareholder value. With the share repurchase option, $600 million has been returned to the shareholders. The company has also distributed dividends in the first quarter and is promising to do the same in the rest of the year.
DD Share prices
Is it still the best buy in the market? What are the risks?
Risks are very closely associated with investments; the same is the case with the DD. The stock is worth $84.24 as of Thursday, May 5, 2021, which is well below the company’s all-time high of $163 meaning that the share prices still have room with the World opening up after it was drastically affected by the pandemic the company is expecting an increase in revenue for the years to come.