JPMorgan Chase (JPM) , Home Depot (HD) , Goldman Sachs (GS) , and UnitedHealth (UNH) are Dow Jones stocks that investors should keep in mind when choosing investment opportunities. They approach opportunistic buying areas from flat or shallow cup bottoms.
Dow Jones Is Above 35,000 Points
At the beginning of the session on Friday, the US Dow Jones Today Industrial Average exceeded 35,000 points. Thus, it approached the all-time high reached on May 10 last year, when it reached 35,091 points. However, during the week, the index again dropped below that level and fell 0.5%.
As of 12.54 pm ET, it was 34,687.85 points. Until the end of last week, the main indices were relatively positive. But the stock market rally has eased this week. In other words, this is not the best time to buy stocks.
It is likely that in the coming weeks, the gains made by the Dow components will push the blue chips to new all-time highs. The general recommendation from the experts is that investors exercise caution when buying stocks before examining companies’ quarterly earnings reports
Revision of this data can lead to certain losses. If a company performed fair or unfavorable during the quarter, it could lead to a drop in its share price. Although this is not the case for three of the five stocks listed on the list with a “best buy” profile.
Goldman Sachs, JPMorgan and UnitedHealth have already submitted their financial statements. Home Depot will do so in the coming weeks, and Honeywell will do so before the market opens on Friday 23 July.
Review Of The Consolidated Stock Rating
With the opening of the corporate earnings season, it is difficult to keep track of all the news on the best-selling stocks. The surest way to find the best stocks to buy these days is to look at their composite IBD rating.
IBD 50 is a stock index based on certain market rules. It identifies the 50 fastest growing stocks listed on the US stock exchanges. IBDs may include domestic securities and ADRs of foreign securities issued by small, medium and large organizations.
Top 4 Dow Jones Stocks To Buy
The most attractive stocks on the market are usually rated 98-99 points. But 95 and above is good for price growth purposes. In this case, Goldman Sachs is the leader of the pack, with an overall rating of 95.
While UnitedHealth’s shares are at 93, Home Depot shares at 84. Next comes JPMorgan with an 80 rating and Honeywell with a 68 rating in fifth place.
- Goldman Sachs Stock
Investment bank shares fell 1.9% to 364.80 last week. The stock fell below its 50-day moving average. The stock has a flat bottom, with an entry point at 393.36. But investors should keep a close eye on its performance.
They may have an early entry opportunity when the stock hits 385.43. If the company’s stock manages to bounce above its 50-day line and this week’s high of 385.33, it’s time to buy.
However, Goldman shares rank first in the IBD Banks – Money Centers group. It was also the Dow’s most successful stock in the first half of 2021. Another plus is the EPS rating of 94, although the relative strength rating is 86.
The RS rating tracks the dynamics of a stock’s price over the past 52 weeks. This value is compared to all other stocks. This data allows you to quickly look at the leading companies in terms of their share price dynamics.
Goldman’s second-quarter earnings and revenues exceeded analysts’ forecasts. This follows from the results announced on Tuesday. The investment bank’s revenues rose to $ 3.61 billion, boosted by the growth of the IPO market. However, trading income was lower than in the first quarter.
- JPMorgan Shares
These stocks manage to consolidate on a flat bottom, with a buy point at 167.54. They fell 2.5% last week to 151.91. If these stocks rise sharply from their 50-day line, this could be a possible early entry opportunity.
JPMorgan has a Debt Burden (EPS) rating of 93 and a Relative Strength rating of 77. In the first half of the year, the stock ranked fifth among all the leading stocks in the Dow Jones. She even turned out to be higher than Microsoft.
JPMorgan is the world’s largest bank by market capitalization. On Tuesday, he presented very good performance results that exceeded all expectations. Despite the fact that compared to the previous quarter in May-June, income from trading operations decreased.
In June, the bank decided to increase its quarterly dividend to $ 1 per share from 90 cents. Earlier this year, the bank initiated a $ 30 billion share buyback plan.
- UnitedHealth Shares
The stock gained 2.7% last week to reach 419.70 as it formed a flat bottom with a buy point of 426.08. However, the line of relative strength is flat and below the peak of the consolidation. The RS line for UnitedHealth shares has been moving sideways since last 2018.
UNH shares are rated at 82 EPS and 71 RS. On Thursday, starting the day, the company has already beaten all expectations for the second quarter. Although UnitedHealth’s profits are down 34% from 2020 results. UNH is selling more again as Americans return to office visits and other deferred medical needs.
Despite this, the dangerous delta variant of Covid-19 is increasing the number of people hospitalized. On the other hand, the planned acquisition by Change Healthcare (CHNG) is under scrutiny from the antitrust regulator.
- Home Depot Shares
The company’s shares fell slightly last week to 321.54 points, pushing off a flat base, the buy point of which was at 345.79. The stock also has an early entry at 324.52. On Friday, it briefly lingered at this short-term resistance level. Any move above this key level will bring the stock closer to the 50-day line.
The company has benefited from the growing demand for building materials. Homeowners, taking advantage of the availability of cash / loans, are looking to remodel their homes to make them more comfortable. During and after the pandemic, Americans spend more time in their homes and want to improve their comfort.
However, many Americans also seem to be redistributing some of that home improvement and renovation spending to other areas such as restaurants, clothing, and shopping. As a result, shares in household goods companies have dropped in recent weeks.
Home Depot’s second quarter financial results will be announced on August 17th. HD stocks are among the most expensive stocks in the Dow Jones Industrial Average this year. This stock has a 94 EPS rating, but its RS rating is only 54.