4 Dow Jones Titans That You Don’t Want to Miss

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U.S. large-cap stocks remain tightly rangebound, with the Dow Jones Industrial Average is in the binds of a ultra-tight three-month downtrend.

4 Dow Jones Titans That You Don't Want to Miss

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The catalysts for the apparent market stasis are familiar: Volatility remains subdued due to ongoing cheap money stimulus from the Bank of Japan and the European Central Bank.

Yet, the post-election uptrend has stalled on weaker U.S. economic data, a lack of legislative progress by President Trump, weak whole-economy corporate earnings and increasing geopolitical tension.

Amid the stasis, as the first-quarter earnings season rolls on, a number of mega-cap stocks have broken out of the funk to push higher. Following are four Dow components that you don’t want to miss!

Dow Titans Breaking Out: United Technologies (UTX)

United Technologies Corporation (NYSE:UTX) shares have broken up and out of a three-month trading range, pushing over the $115-a-share level for the first time since early 2015. The company is benefiting from the recent inclusion onto Bank of America Merrill Lynch’s preferred U.S. stock buy list.

The company will next report results on April 26 before the bell. Analysts are looking for earnings of $1.39 per share on revenues of $13.5 billion. Prior results reported in January featured in-line earnings on a 2.5% increase in revenues.

Dow Titans Breaking Out: Home Depot (HD)

Home Depot Inc (NYSE:HD) shares are threatening to break up and out of a tight two-month trading range and onto new record highs. As the weather warms, and investors get to work on home repair/remodeling and yard work, no doubt HD is top-of-mind as one of the few consistent performers in the troubled retail sector.

The company remains dominant over its competitor Lowe’s Companies, Inc. (NYSE:LOW), with a recent RBC Capital Markets upgrade note on the latter including a big caveat: While they expect LOW’s share price to increase, they still prefer HD instead for its more consistent management execution. Morgan Stanley analysts are looking for $165 a share.

The company will next report results on May 16 before the bell. Analysts are looking for earnings of $1.60 per share on revenues of $23.7 billion.

Dow Titans Breaking Out: Microsoft (MSFT)

Microsoft Corporation (NASDAQ:MSFT) shares are surging higher on Friday, pushing out of a two-month consolidation range to tag new record highs. Shares are enjoying a boost on favorable pre-earnings analyst coverage.

RBC Capital Markets analysts noted positive tailwinds including improving transactional business, good commercial cloud gross margins, and modestly better PC demand data.

The company will next report results on April 27 after the close. Analysts are looking for earnings of 70 cents per share on revenues of $23.6 billion.

Dow Titans Breaking Out: American Express (AXP)

American Express Company (NYSE:AXP) looks ready to jump out of a multi-month funk after reporting solid earnings results earlier this week.

The company reported earnings of $1.34 per share, seven cents ahead of estimates, on a 2.5% drop in revenues from last year. RBC analysts note the beat was driven by a lower tax rate and a lower-than-modeled credit loss provision, both of which could be argued are “low quality” factors.

The company will next report results on July 19 after the close. Analysts are looking for earnings of $1.43 per share on revenues of $8.2 billion.

Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. A two-week and four-week free trial offer has been extended to Investorplace readers. Redeem by clicking the links above.


Article printed from InvestorPlace Media, https://investorplace.com/2017/04/4-dow-jones-titans-that-you-dont-want-to-miss/.

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