What will probably happen

• ROE is on an upward path: if the leading leg continues, the next reported period should sustain or extend the gain.

What to do

If you HOLD this stock

No structural red flags from the DuPont picture. Maintain the position but continue monitoring the leading leg: it's the first place a story change shows up.

If you are EVALUATING this stock

Margin-driven ROE that's improving is the highest-quality DuPont signal. Before buying, check whether pricing power or cost reduction is driving margins: pricing power is more durable.

If you trade OPTIONS

Improving margin-driven ROE is a quality tailwind. If the stock is at a reasonable valuation, covered calls or cash-secured puts capitalize on the stable-to-improving fundamental backdrop.