Cramer's Morning Take: DuPont 8/5/25

Jim Cramer (0:02)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting. Now, we have a couple of things that are going on. A lot of high flyers that are doing well, a Palantir is doing well, an Axon. And, you know, I'm incredibly conscious, those are terrific stocks, but we also have some stocks that are going, that are doing incredibly well, that may be worth buying in an environment where it's a kind of benign environment. And I'm gonna cut right to the chase and say, we should buy DuPont. When I spoke to Ed Breen this morning, I have to tell you, that was a great quarter. That was a great quarter.

Jeff Marks (0:36)

It was, the stock was up 5% pre-market, not sure why it came back. I mean, the conference call happened. It was a good call. The quarter was great.

Jim Cramer (0:45)

This is exactly what we do. This is what we do. We find these stories where we know we've got an analyst meeting in September. That's not as far from it.

Jeff Marks (0:53)

Yes, for the electronics company.

Jim Cramer (0:54)

The November break up. And we also put in the past, there's only one more case involving forever chemicals. That's North Carolina. And I think that what you're looking at right now is one of the most undervalued situations I have come across. Now, it's not a Palantir undervalued. It is just classic investment that can be justified by the PE, by the valuations, and by the possibility that there's two companies here that are worth far greater than one.

Jeff Marks (1:23)

Well, sure, and the one that everyone looks at, why it's so cheap, it's that electronics business, which supplies, it has a lot of AI in markets, also consumer as well. The AI is really is what's driving the strength. It was, it grew 6% organically. Revenues in the quarter volume up 8%.

So that's very nice to see. They said on the earnings call that momentum continued into the third quarter with order patterns remaining strong through July. And why I think that was so important is because I think there was a belief that maybe 2Q would be really good but a weak Q3 because of orders being pulled forward due to tariffs, especially from China, by the way, Asia Pacific, up 4%. So that doesn't really seem to be the case. There was a pull forward, but not enough to really derail things because the Q3 guide was above consensus. They raised the full year above consensus. Some of that also is now inclusive to a smaller impact from tariffs, which they now see from the 10 cents to 4 cents. Yeah, absolutely. So all around, very good to see. Again, it was up 4% or 5% pre-market, now only up 1%. So perhaps an opportunity to point out.

Jim Cramer (2:30)

And what's our goal as portfolio managers for you? What we're looking at are situations that are low risk that could have a really good return. We are not so much interested in super high risk that could have a good return because we're travel trusting because we want to be responsible. I mean, look, we managed to own a video through the whole rubble. We can do it. But this is the kind of situation where there's a, this is just mispriced.

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SPEAKER_3 (3:09)

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