DuPont Soars to Lead the Dow's Comeback

After yesterday's market bloodbath, DuPont and Merck are among a handful of high-performing stocks on the Dow Jones today.

Feb 4, 2014 at 2:31PM

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

After yesterday's market implosion, the Dow Jones Industrial Average (DJINDICES:^DJI)has turned things around to pick up about 70 points as of 2:30 p.m., with most blue-chip stocks rising into the green. DuPont's (NYSE:DD) 3% leap has led the Dow, while Big Pharma company Merck (NYSE:MRK) has risen 2.7% after signing a big deal of it own. Let's catch up on what you need to know.

DuPont hones in on farming dominance
DuPont is a huge player in the agricultural industry, and today the company's seed business announced a new deal with information firm DTN/The Progressive Farmer. The agreement will allow DuPont to send out weather and market information to farmers, expanding the company's reach in the growing precision agriculture industry that's centered around using data and analytics to maximize farm profits on such trends as soil types, moisture, and weather patterns.

DuPont's deal comes after rival Monsanto (NYSE:MON) signed a similar agreement in November, buying The Climate Corp., a weather data company, for $930 million. Monsanto projects that data mapping in agriculture could unlock a new $20 billion market.

That's a gold mine for DuPont, which has struck it rich in the agricultural sector as of late. The company announced a strikingly successful most recent quarter, doubling its net profit and growing sales nearly 6% behind its surging agricultural unit. The business has become DuPont's largest by sales, and in the fourth quarter revenue from agricultural products jumped 18%. Latin America has exploded as a major growth market, with insecticides selling very well in the most recent quarter. If DuPont can become a dominant force in the precision agriculture industry, this company will be poised to see a lot more green for a long time in its largest business.

Merck's also moving up in a big way today after the company announced an agreement with Belgian biotech Ablynx to develop new cancer treatments. The deal, in which Merck will pay $27 million up front to the company but could deliver up to $2.3 billion if more conditions are met, will see Ablynx develope its nanobodies to pursue more effective cancer immunotherapies. Merck has pushed into the cancer-fighting therapy market at full steam, recently filing for approval for its potential blockbuster drug MK-3475. Considering that analysts believe the cancer immunotherapy market could be worth up to $35 billion eventually, Merck may be on the way to restocking its pipeline with some serious potential firepower.

Can Merck's dividend transform your financial future?
Merck's emerged as a top dividend stock on the Dow with its high yield. One of the dirty secrets that few finance professionals will openly admit is the fact that dividend stocks as a group handily outperform their non-dividend paying brethren. The reasons for this are too numerous to list here, but you can rest assured that it's true. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.

Dan Carroll has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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