Pros and Cons of Investing in DuPont

PHOTO CREDIT: DuPont

OVERVIEW

Why You Should?

  1. The company will see some positive impacts from the Biden administration. Biden will look to sign massive trade deals with our allies, something that will give DuPont an opportunity to sell more of its chemicals internationally. More infrastructure and defense spending will also benefit the company and its investors.
  2. The company sells a wide range of products and services to its customers around the world. Its chemicals are used in paints, plastics, solar panels, and many more products. This diverse portfolio of products will help the company gain new customers and retain others for a longer period of time. This will help the company grow its business and will benefit investors.

Why You Should Not?

  1. The company has been negatively impacted by the pandemic. Many industrial and commercial companies that manufacture products using DuPont’s chemicals saw a drop in demand for their products. This caused DuPont to see lower sales volumes for their chemicals. Supply chain issues also hurt the company during this time. This hurt the company and its investors.
  2. The company also faces a negative political environment. Biden and the Democrats will look to increase environmental regulation and policies in order to fight climate change and pollution. This means that the company will need to pay higher fees and taxes and many need to adjust how they operate in order to follow these new regulations.

MY OPINION

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Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

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Aaditya Patel

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.