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

Jim Cramer (0:02)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC 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, and this is what you should do. If you have a stock you really love, you actually want it 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.

SPEAKER_2 (0:31)

Yeah, and I think it was an upgrade today from Jeffery's. Pretty big call. They raised the price target to 101 from 78 They go to buy.

Talking about basically an upturn that could go through 2025 into 2026 So you got multiple years of runway here. A lot of that being driven by electronics, new PCs.

Jim Cramer (0:52)

Yeah, sector growth now.

SPEAKER_2 (0:53)

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 the balance sheet flexibility. We know DuPont likes to do a lot of accelerated share repurchases. They're 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, it's much cheaper.

Jim Cramer (1:20)

Yes, well, because it did miss a couple of quarters.

SPEAKER_2 (1:22)

It hasn't been good.

Jim Cramer (1:23)

No, it hasn't. I mean, we were there for this where I had actually some tough conversations with management saying, guys, you can't keep doing this.

SPEAKER_2 (1:32)

Right, and that was due to some inventory de-stocking in water. But then they talked about in conference season here that the orders have been picking up, and that's what made everyone, and that was the key. It's kind of like an inflection story because the numbers are down year over year, but it's only 3% year over year, but still cheap, has a nice runway.

I think if it comes back, I'd be glad to have you buy some.

Jim Cramer (1:57)

If it comes 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 cnbc.com/morningtake to access all the benefits of being a CNBC Investing Club member.

SPEAKER_3 (2:15)

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