U.S. equities have snapped out of their recent funk on Thursday thanks to a rebound in large-cap technology stocks and some bargain hunting in semiconductor stocks. The latter have been the focus of some intense selling pressure on worries over stalled demand and growing inventories.
Other catalysts encouraging investors include a relatively tame August inflation report and little in the way of surprises from policy updates by the European Central Bank and the Bank of England. Also, emerging market currencies enjoyed a respite after the Turkish lira rallied on a surprise interest rate hike.
As a result, a number of Dow Jones Industrial Average companies are perking up in a big way. Here are five Dow Jones stocks that are worth a look for new money right now:
Dow Jones Stocks to Watch: Apple (AAPL)
Apple (NASDAQ:AAPL) shares are continuing to rally off of their 20-day moving average in a possible retest of the early September record high. Investors are warming up to yesterday’s iPhone/Apple Watch product refresh presentation, with the Apple Watch Series 4 featuring a new larger form factor and the iPhone Xs and Xs Max continuing to push average selling prices higher in exchange for more screen space and faster processors.
The company will next report results on Oct. 30, after the bell. Analysts are looking for earnings of $2.75 per share on revenues of $61 billion. When the company last reported on July 31, earnings of $2.34 beat estimates by 16 cents on a 17.3% rise in revenues.
Dow Jones Stocks to Watch: American Express (AXP)
American Express (NYSE:AXP) shares are pushing to new record highs on Thursday, capping a rise of roughly 13% of off its 200-day moving average back in June. This extends the stock up and out of a year-to-date consolidation range that was bounded by the $104-a-share level on the upside and the $90-a-share level on the downside. The bulls are carrying the day despite headlines last week of an FBI investigation into the company’s foreign exchange pricing.
The company will next report results on Oct. 17, after the bell. Analysts are looking for earnings of $1.75 per share on revenues of $10 billion. When the company last reported on July 18, earnings of $1.84 beat estimates by 3 cents on a 9% rise in revenues.
Dow Jones Stocks to Watch: IBM (IBM)
IBM (NYSE:IBM) shares are breaking higher, setting the stage for another upswing within the confines of a churning, sideways channel going back to the summer of 2016. Solid multi-year support has been built up near $135, setting up a move back to the January high near $162.50, which would be worth a gain of roughly 10% from here. Analysts at Wells Fargo recently resumed coverage with a neutral rating.
The company will next report results on Oct. 17, after the close. Analysts are looking for earnings of $3.4 per share on revenues of $19.1 billion. When the company last reported on July 18, earnings of 4 cents per share beat estimates by 4 cents on a 3.7% rise in revenues.
Dow Jones Stocks to Watch: Johnson & Johnson (JNJ)
Johnson & Johnson (NYSE:JNJ) shares continue their steady climb higher, pushing to levels not seen since late January for a total rise of 17% from the lows seen in early July. The stock has been benefiting from the investor rotation into healthcare stocks — amid a growing interest in defensive sectors — as the Health Care Select SPDR (NYSEARCA:XLV) extended a new record high in late August.
The company will next report results on Oct. 16 before the bell. Analysts are looking for earnings of $2.03 per share on revenues of $19.9 billion. When the company last reported on July 17, earnings of $2.10 beat estimates by 3 cents on a 10.6% rise in revenues.
Dow Jones Stocks to Watch: Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) jumped to a new intra-day record high on Thursday, rebounding off of its 50-day moving average last week. Shareholders have been enjoying an unbroken rise in this Dow Jones stock since the summer of 2016 that has seen shares more than double on enthusiasm over the company’s success in business cloud computing services. The company will host a new product event on Oct. 2 to unveil new iterations of its Surface devices.
The company will next report results on Oct. 18, after the close. Analysts are looking for earnings of 96 cents per share on revenues of $27.7 billion. When the company last reported on July 19, earnings of $1.14 beat estimates by 6 cents on a 17.5% rise in revenues.
Anthony Mirhaydari is the 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.
