Pros and Cons of Investing in DuPont

PHOTO CREDIT: DuPont

OVERVIEW

DuPont de Nemours Incorporation is a company based in the United States. The company designs develop, manufactures, and sells chemical products and technology around the world. The company manufactures chemicals found in plastics, paints, energy, aerospace, and many other products. The company was founded in 1897.

Why You Should?

  1. DuPont Incorporation is a great reopening play in an investor’s portfolio. The company saw a drop in sales volumes as industrial and commercial companies around the world shut down due to the pandemic. However, once this pandemic is over, the company will see a rise in demand as these companies return to work and use chemicals

Why You Should Not?

  1. The company faces tough competition in the chemicals industry. Some of these competitors include Dow, Monsanto, PPG, and FMC. This competition might hurt the company and its investors in the future.

MY OPINION

I think that DuPont is a decent long-term investment due to its position as a good reopening play, a wide range of products, as well as positive impacts from the Biden administration. However, tough competition, negative impacts from the pandemic, as well as a negative political environment might hurt the company and its investors in the future.