Corteva stock underperforms market ahead of earnings report

In recent trading, Corteva Inc. (NYSE:) closed at $48.14, marking a 0.17% decline, trailing the S&P 500’s gain of 0.65%, Dow’s rise of 0.38%, and Nasdaq’s increase of 0.48%. Over the past month, CTVA’s value has depreciated by 3.66%, underperforming both the Consumer Staples sector’s loss of 0.58% and the S&P 500’s loss of 2.79%.

Looking forward to its earnings report due on November 8, 2023, Corteva is projected to report an EPS drop of 91.67% to -$0.23 and a net sales decrease of 7.17% to $2.58 billion year-over-year.

Recent shifts in analyst projections for CTVA reflect changes in short-term business trends and estimate changes that could directly impact the stock’s imminent price performance.

InvestingPro Insights

The InvestingPro data reveals a mixed picture for Corteva Inc. (NYSE:CTVA). With an adjusted market cap of $34.16 billion and a P/E ratio of 37.22, the company is trading at a high earnings multiple. The revenue for the last twelve months as of Q2 2023 was $17.53 billion, with a growth rate of 4.96%. However, the quarterly revenue growth for Q2 2023 was -3.31%, indicating a recent slowdown.

InvestingPro Tips suggest that while the management has been aggressively buying back shares, and the company has raised its dividend for 4 consecutive years, there are concerns about poor earnings and cash flow that may force dividend cuts. Also, 8 analysts have revised their earnings downwards for the upcoming period. Despite these challenges, the company has been profitable over the last twelve months and has shown a strong return over the last five years.

In the light of these insights, it’s recommended to closely monitor CTVA’s performance, especially around its earnings report due on November 8, 2023. Remember, these are just a few of the tips provided by InvestingPro, which offers a wealth of additional insights for informed investment decisions.

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