Was Jim Cramer Right About DuPont de Nemours, Inc. (DD)?

We recently published a list of Was Jim Cramer Right About These 11 Stocks? In this article, we are going to take a look at where DuPont de Nemours, Inc. (NYSE:DD) stands against other stocks that Jim Cramer discusses.

A closeup of a hand manipulating a complex piece of machinery in a semiconductor factory.

In an older segment, Cramer reacted to the announcement that DuPont de Nemours, Inc. (NYSE:DD) would split into three companies at the time. He was stunned the market didn’t react positively and gave his own view on it:

“Sometimes the market’s so wrong that it just takes your breath away. […] Ed Breen, the amazing CEO of DuPont, announced he’s splitting up the company into three separate companies so Wall Street will finally give these businesses the credit they’re worth. I figured the stock would open up four or five percent — and instead, it was down a dollar. […]

You’re getting a new DuPont that’s far less cyclical. It’s got health care, energy storage, safety and protection — all fantastic businesses. The breakup here is going to take 8 to 12 or even 24 months, but meanwhile, they can buy others, they can make a ton of money. […]

The water business is being valued at an incredibly low multiple versus comps like Xylem and Pentair. […] We come up with a sum-of-the-parts valuation of $100 for this $79 stock — and that’s conservative.

“Long story short: the market often makes mistakes — and ignoring the DuPont breakup is one for the books. […] What’s not to like? Let’s just say you have a chance to buy DuPont much, much lower than it deserves to be.”

Cramer misread the market’s reaction as DuPont slid 14.29% since the breakup announcement. DuPont de Nemours, Inc. (NYSE:DD) is undergoing a three-way breakup to unlock shareholder value across its electronics, water, and specialty materials divisions.

Overall, DD ranks 4th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of DD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DD and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.