U.S. equities are closing in on what was one of the quietest September’s on record as a surge in key areas like financials, energy and small-cap stocks helped Wall Street shrug off some potentially worrisome catalysts. These include rising tensions with North Korea, a tech-sector pullback and an increasingly hawkish Federal Reserve.
From its mid-August low, the Russell 2000 small-cap index has climbed nearly 8% in smooth, unmitigated fashion. Save for a little bump at the start of September, it looks like a perfect 45-degree line up and to the right. The Dow Jones Industrial Average followed suit, at least initially, but it has since hit a few headwinds.
That should change. SentimenTrader notes that September’s calm — an impressive feat given the seasonal headwinds traditionally in play this time of year — should lead to a calm October as well. That gives way to the typical holiday boost the market enjoys in November and December, setting the stage for a strong rally into 2018.
If so, here are 10 Dow Jones stocks to buy that should perform well through the end of the year:
Best Dow Jones Stocks to Buy: American Express (AXP)
American Express Company (NYSE:AXP) shares are punching out to new highs on Wednesday, pushing towards the $90-a-share level for the first time since 2014. This represents a doubling from the lows hit in early 2016, as the company has shaken off the hit to its business from the loss of an exclusive credit card arrangement with Costco Wholesale Corporation (NASDAQ:COST).
The company will next report results on Oct. 18 after the close. Analysts are looking for earnings of $1.47 per share on revenues of $8.3 billion. When the company last reported on July 19, earnings of $1.47 beat estimates by 3 cents on a 0.9% rise in revenues, thanks to a tax benefit. Management highlighted an ongoing cost-cutting effort expected to hit a $1 billion annual run rate by the end of the year.
Best Dow Jones Stocks to Buy: Boeing (BA)
Boeing Co (NYSE:BA) shares are continuing a breathtaking upward performance, breaking out of a three-month consolidation range and flirting with the $260-a-share level. Shares have more than doubled from the three-year-long trading range near $120, between 2013 and 2016, on a surge of airline orders and a general lift in aerospace/defense stocks on the expectation President Trump ramps up military spending.
The company will next report results on Oct. 25 before the bell. Analysts are looking for earnings of $2.64 per share on revenues of $23.8 billion.
Best Dow Jones Stocks to Buy: Caterpillar (CAT)
Caterpillar Inc. (NYSE:CAT) shares are creeping to incremental new highs on Wednesday, continuing a stair-step uptrend out of the consolidation range that was in play at the start of the year. Shares enjoyed an upgrade from analysts at UBS earlier this month on evidence that the recent earnings momentum will continue and generate nearly $10 billion in free cash flow through 2020 spurred by a re-acceleration of U.S. private construction activity.
The company will next report results on Oct. 24 before the bell. Analysts are looking for earnings of $1.25 per share on revenues of $10.7 billion. When the company last reported on July 25, earnings of $1.49 beat estimates by 23 cents on a 9.6% rise in revenues.
Best Dow Jones Stocks to Buy: Goldman Sachs (GS)
Goldman Sachs Group Inc (NYSE:GS) shares are popping up and out of a seven-month consolidation range, returning to levels not seen since the middle of March. The rise, representing a 10% lift off the early June lows, is being spurred by hopes of higher long-term interest rates from the Federal Reserve; which is expected to lift net interest margins and bank sector profitability. To date, these hopes have offset concerns about lower trading revenue amid an ongoing volatility compression in public markets.
The company will next report results on Oct. 17 before the bell. Analysts are looking for earnings of $4.09 per share on revenues of $7.7 billion. When the company last reported on July 18, earnings of $3.95 beat estimates by 56 cents despite a 0.6% drop in revenues.
Best Dow Jones Stocks to Buy: Intel (INTC)
Intel Corporation (NASDAQ:INTC) shares are threatening to break up and over two-year-long resistance near $38, which could end a messy sideways pattern that has been in play since 2014. Shares have rallied more than 14% from their July lows and they have been lifted by news this week that Tesla Inc (NASDAQ:TSLA) will use INTC chips in its vehicles in a pivot away from a reliance on Nvidia Corporation (NASDAQ:NVDA).
The company will next report results on Oct. 26 after the bell. Analysts are looking for earnings of 80 cents per share on revenues of $15.7 billion. When the company last reported on July 27, earnings of 72 cents beat estimates by 4 cents on a 9.1% rise in revenues.
Best Dow Jones Stocks to Buy: JPMorgan (JPM)
JPMorgan Chase & Co. (NYSE:JPM) shares are rising up and out of a three-month consolidation range, potentially marking the end of a yearlong sideways crawl. Shares have rallied more than 17% from their May/June lows with an 8% move over just the last few weeks, spurred on by net interest margin hopes. Not everyone is convinced, however, creating a potential “wall of worry” that shares can benefit from: Deutsche Bank analysts cut the stock to hold, believing the Fed’s policy tightening could flatten the yield curve as bond traders price in lower economic growth rates.
The company will next report results on Oct. 12 before the bell. Analysts are looking for earnings of $1.65 per share on revenues of $24.88 billion. When the company last reported on July 14, earnings of $1.82 beat estimates by 23 cents on a 4.6% rise in revenues.
Best Dow Jones Stocks to Buy: United Technologies (UTX)
United Technologies Corporation (NYSE:UTX) shares are rising above their 50-day moving average on Wednesday, extending a 7% rally off its early September lows. The stock is still down 4% from its summer time high and it is trading at levels first reached in 2015.
The company is benefiting from a renewed focus on the aerospace/defense sector amid rising tensions with North Korea and some M&A activity. The company announced a deal to purchase Rockwell Collins, Inc. (NYSE:COL) earlier in the month.
The company will next report results on Oct. 24 before the bell. Analysts are looking for earnings of $1.69 per share on revenues of $14.96 billion. When the company last reported on July 25, earnings of $1.85 beat estimates by 8 cents on a 2.7% rise in revenues.
Best Dow Jones Stocks to Buy: Verizon (VZ)
Investors have had a lot to think about concerning telecoms lately, with the launch of Apple Inc.’s (NASDAQ:AAPL) iPhone X, increased price competition and rumors of a potential tie-up between Sprint Corp (NYSE:S) and T-Mobile US Inc (NASDAQ:TMUS).
Industry consolidation would be good for Verizon Communications Inc. (NYSE:VZ), since it would lessen the intense competition for subscribers that is pushing down cell phone plan prices in a big way. Shares have been mired in a two-year-long sideways crawl after the lift associated with the Yahoo acquisition faded.
The company will next report results on Oct. 19 before the bell. Analysts are looking for earnings of 98 cents per share on revenues of $31.5 billion. When the company last reported on July 27, earnings of 96 cents matched estimates on a 0.1% rise in revenues.
Best Dow Jones Stocks to Buy: Home Depot (HD)
Home Depot Inc (NYSE:HD) has been perennially one of the best performing retail stocks in the market thanks to a strong rebound in the housing market, strong management execution and poor showings by competitors. Shares are up nearly 10% over the past month on the anticipated revenue impact from Hurricanes Irma and Harvey.
The company will next report results on Nov. 14 before the bell. Analysts are looking for earnings of $1.81 per share on revenues of $24.4 billion. When the company last reported on Aug. 15, earnings of $2.25 per share beat estimates by 3 cents on a 6.2% rise in revenues.
Best Dow Jones Stocks to Buy: Apple (AAPL)
Apple shares have suffered a 9% pullback from their recent high after excitement surrounding the iPhone X unveiling gave way to nervousness about production delays, tepid iPhone 8 demand and LTE connectivity problems with the Apple Watch.
While the surge of deliveries probably won’t occur until early 2018, the demand for the iPhone X will likely exceed expectations and mark a repeat of the iPhone 6 “super cycle” of 2014. This is the first new form factor in three years. It contains a number of new technologies vs. the incremental updates seen to date. And pressure from a high price is alleviated by the transition from a subsidized purchase to a lease to own model.
The company will next report results on Oct. 31 after the close. Analysts are looking for earnings of $1.88 per share on revenues of $50.9 billion. When the company last reported on Aug. 1, earnings of $1.67 beat estimates by 10 cents on a 7.2% rise in revenues.
Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
