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Banking industry

Dow Jones Stocks to Watch as They Near Buy Zones

Strategic Insights

— 1 min read

Dow Jones stocks such as Goldman Sachs, JPMorgan, and UnitedHealth are approaching buy zones from flat (or shallow cup) bases. The Dow Jones Industrial Average recently topped 35,000, but retreated back below the level, edging down 0.5% for the week. Strong earnings from Dow Jones components in the coming weeks could push blue chips to a new high. However, investors need to be cautious buying stocks ahead of quarterly earning reports as a large miss could send the stock price tumbling.

Key Takeaways:

  • Goldman Sachs leads the group with a 95 Composite Rating, while UnitedHealth has a 93 rating, indicating their strong fundamental and technical performance.
  • JPMorgan and Home Depot also show strong earnings potential, with JPMorgan's 93 EPS Rating and Home Depot's 94 EPS Rating.
  • UnitedHealth's RS Rating is flat and below the consolidation peak, indicating a potential risk for the stock.
  • Home Depot's shift towards restaurants, clothing, and the mall suggests a shift in consumer spending habits, which may impact housing-related stocks.
  • Honeywell's strong earnings estimates, with analysts seeing a 54% increase in earnings to $1.94 per share and a 17% rise in revenue to $8.6 billion, make it a stock to watch.
  • The Composite Rating compiles scores on key fundamental and technical metrics, providing a comprehensive view of stock performance.

Statistics:

  • The Dow Jones Industrial Average topped 35,000 early in the session, but retreated back below the level.
  • The index edged down 0.5% for the week.
  • Goldman Sachs' Composite Rating is 95, while UnitedHealth's rating is 93.
  • JPMorgan's 93 EPS Rating indicates strong earnings potential.
  • Home Depot's 94 EPS Rating also suggests strong earnings potential despite a shift in consumer spending habits.
  • Honeywell's earnings estimates for Q2 are expected to climb 54% to $1.94 per share and revenue is expected to rise 17% to $8.6 billion.

Sources:

  • IBD.com: "Dow Jones Tests 35,000 On Friday"
  • IBD.com: "Stock Market Rally Weakening Below the Surface"

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