The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.
Over the next couple of weeks, John and David will be revisiting some calls they made on individual stocks of the Dow. Today, they're checking out DuPont. This company is up a solid 8% in 2012 compared with a roughly 7% gain for the Dow average as a whole.
David and John thought DuPont would outperform the Dow over the next five years. So far, it’s roughly the same as the index. Despite its satisfactory performance so far, the company has been feeling the impact of slowing global demand, as many of its businesses have seen declining sales. Its chemicals business, which competes with companies like Dow Chemical and Titanium Metals, saw volumes decrease. On the other hand, its agricultural segment, going up against Monsanto, has been performing quite nicely. Sales have been rising recently. David really likes DuPont’s dedication to innovation. Obviously, a global slowdown won't help the company, but its innovative culture should help it beat the market over the next five years.
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David Meier has no positions in the stocks mentioned above. John Reeves has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Titanium Metals. 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.