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Cramer's Morning Take: DuPont 5/17/24

Jim Cramer explains why he wants this chemical stock holding to come down more. Become a CNBC Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks as they talk candidly about the market’s biggest headlines. Signup here: cnbc.com/morningtake
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Duration:
4m
Broadcast on:
17 May 2024
Audio Format:
mp3

Jim Cramer explains why he wants this chemical stock holding to come down more. Become a CNBC Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks as they talk candidly about the market’s biggest headlines. Signup here: cnbc.com/morningtake  

CNBC Investing Club Disclaimer

What's on the horizon for financial markets? At PJIM, it's a question that over 1,400 investment professionals relentlessly research in pursuit of your long-term goals. Specialised across asset classes, but united in collaboration, our teams provide global and local expertise. Our investments shape tomorrow, today. Pursue your tomorrow with PJIM, a leading global asset manager. I'm Jim Kramer, and you're about to hear a sample taken directly from today's CMC Investing Club morning meeting. I want to go over for a second what we've been talking about, which is that DuPont is so great and we didn't have enough that we literally are, I mean, this is what you should do. If you have a stock you really love, you actually wanted to come down. I want DuPont to come down because I think had we known all the good things that we were kind of wired to it, but this is where you would have bought a ton of stock. Yeah, and I think that it was an upgrade today from Jeffries, pretty big call. They raised a price target of 101 from 78. They go to buy, talking about basically an upturn that could go through 2025 into 2026. So you've got multiple years of runway here, a lot of that being driven by electronics, new CMCs, cell phones, but also there's an AI data center component as well, residential construction. They're also exposed to industrial water as well. They like to balance sheet flexibility. We know DuPont likes to do a lot of accelerated share purchases are kind of completing the last one now. They'll do another one after that. And then the multiple, I mean, if you look at peers in electronics, you look at peers in water. Yeah. Yes. Well, because it did miss a couple of quarters. It hasn't been good. No, it's not. I mean, we were there for this at where I had actually some tough conversations with management saying, guys, you can't keep doing this. Right. And that was, and that was due to some inventory de-stopting in water, but then they talked about in conferences in here that the orders have been picking up. Yeah. That was everyone. Yes. And that was the key. It's kind of like an inflection story because the numbers are down year over year, but it's had, you know, up only 3% in year over year, but still cheap has a less run way. Yeah. I think if it comes back. You're right. Oh, no, no, it goes back. It'll be ideal for us. Start your day with my outlook on the daily market every morning at 10 20 a.m. Visit cmbc.com/morningtake to access all the benefits of being a CNBC investing club member. All opinions expressed by Jim Kramer on this podcast and in connection with the CNBC investing club are solely Kramer's opinions and do not reflect the opinions of CNBC, NBC Universal or their parent company or affiliates and may have been previously disseminated by Kramer on television, radio, internet or another medium. No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Kramer. The opinions offered in connection with this podcast and the CNBC investing club are not an attempt to induce any particular trading behavior, investment or strategy. You should be aware of the risk of loss and following any strategy or investment discussed in the content from Kramer. To view the full CNBC investing club disclaimer, please visit cmbc.com/investingclubdisclaimer. Before they were Team USA, they were kids trading recess for reps and summer vacations for travel tournaments. All for one moment, now the moment is here and you can watch it all with Xfinity Mobile during the Olympic Games. Get the fastest connection to Paris with Xfinity, proud partner of Team USA. Now through September 21st, Xfinity Internet customers can buy one unlimited line and get one free for a year. Learn more at Xfinity.com/teamusa. Restrictions apply Xfinity Internet service and two known limited lines required. Reduce speeds at the 30 gigabytes of usage per line, data threshold's may vary. [BLANK_AUDIO]