DuPont falls on earnings, but investors might want to buy on weakness

The market didn't like DuPont's (DD) third-quarter earnings report, sending shares of the chemical giant down as much as three percent during Tuesday's session. This component of the Dow Jones Industrial Average ($INDU) easily beat Wall Street's profit estimate, but sales across all DuPont's businesses were down.

DuPont's stock has been a market beater so far this year, rising 37 percent to outpace the S&P 500 ($INX) by 15 percentage points. Perhaps today's stumble offers investors a chance to buy the blue chip on weakness. Shares go for just 16 times forward earnings, offering a discount of about 20 percent to the broader market. That's an intriguing relative valuation. Perhaps most attractive is DuPont's dividend. The share-price slide has boosted the yield to 4.8 percent.

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