7 Titans of the Dow Jones With More Upside to Come

The liklihood of extended weakness in the markets is dulling as these Dow Jones stocks lead a charge higher

By William Roth, InvestorPlace Market Strategist

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Rebound

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Last week, just days after flirting with the 27,000 threshold and setting new record highs, the Dow Jones Industrial Average plunged on worries over the impact rising long-term interest rates would have on the economy amid the Federal Reserve’s ongoing tightening cycle. This week, after the harrowing selloff, U.S. equities found respite thanks to these Dow Jones stocks.

But investors aren’t quite out of the woods just yet. Adding to the worries has been a persistent bid in crude oil prices and the rollout of third-quarter corporate earnings results.

On the technical basis, the market selloff is looking extended here and stocks are prone to rebounding. These seven titans of the Dow Jones should continue to lead the charge higher:

Chevron (CVX)

Chevron Corporation (NYSE:CVX) share are possibility finding support near the lower end of a consolidation range going back to April — setting up a relief rally back up and over its 200-day and 50-day moving averages. Earlier this month, the company was added to Goldman Sachs conviction buy list.

The company will next report results on Nov. 2 before the bell. Analysts are looking for earnings of $2.16 per share on revenues of $47 billion. When the company last reported on July 27, earnings of $1.78 per share missed expectations by 31 cents on a 22.5% rise in revenues.

Boeing (BA)

Boeing (NYSE:BA) shares are rebounding back above their 50-day moving average on Monday, recovering from a decline of roughly 10% from the high set earlier this month.

The company has been on the front line of trade concerns between the United States and China, which was a topic asked of President Trump in a recent 60 Minutes segment. With sentiment so low, a positive surprise is likely (such as the resumption of high-level talks between Washington and Beijing).

The company will next report results on Oct. 24 before the bell. Analysts are looking for earnings of $3.51 per share on revenues of $24.1 billion. When the company last reported on July 25, earnings of $3.33 per share beat estimates by eight cents on a 5.2% rise in revenues.

Intel (INTC)

Intel Corporation (NASDAQ:INTC) shares are testing support near the $44-a-share level and look set for another run at the 200-day moving average, which would be worth a 10% gain from here.

Shares have been on the slide since peaking in early June on worries over end-demand for memory chips, which has resulted in bloated inventories and price pressure.

The company will next report results on Oct. 25 after the close. Analysts are looking for earnings of $1.15 per share on revenues of $18.1 billion. When the company last reported on July 26, earnings of $1.04 beat estimates by seven cents on a 14.9% rise in revenues.

Verizon (VZ)

As a defensive, non-cyclical telecom stock Verizon (NYSE:VZ) shares have enjoyed relative price stability over the past week — holding within the confines of a multi-month consolidation range. The stock recently enjoyed a price target upgrade from analysts at UBS, who are now looking for $80 a share.

The company will next report results on Oct. 23 before the bell. Analysts are looking for earnings of $1.19 per share on revenues of $32.5 billion. When the company last reported on July 24, earnings of $1.20 beat estimates by five cents on a 5.4% rise in revenues.

McDonald’s (MCD)

McDonald’s (NYSE:MCD) shares were caught in the whirlwind of selling last week but remain within the confines of a medium-term uptrend going back to early August. The 50-day moving average is providing support. The stock was upgraded by analysts at Evercore ISI this morning, providing a tailwind to sentiment.

The company will next report results on Oct. 23 before the bell. Analysts are looking for earnings of $2 per share on revenues of $5.3 billion. When the company last reported on July 26 earnings of $1.99 beat estimates by seven cents on an 11.5% decline in revenues.

Coca-Cola (KO)

Coca-Cola (NYSE:KO) shares are rebounding on support from its late August lows, setting up another run at overhead resistance near the $46.50 level. The company was recently on a list of defensive domestic plays highlighted by Deutsche Bank analysts despite broad fundamental pressure on tiger beverages space.

The company will next report results on Oct. 30 before the bell. Analysts are looking for earnings of 55 cents per share on revenues of $8.2 billion. When the company last reported on  July 25, earnings of 61 cents per share beat estimates by a penny on an 8.3% decline in revenue.

Disney (DIS)

Disney (NYSE:DIS) shares are among the better performers on the day, rallying 1.2% so far to cross back up and over both the 50-day and 20-day moving averages. The stock remains within the confines of a multi-month trading range going back to July. Watch for another run over double-top resistance near $118 — which would be worth a 4% gain from here.

The company will next report results on Nov. 8 after the close. Analysts are looking for earnings of $1.35 per share on revenues of $13.8 billion. When the company last reported on Aug. 7, earnings of $1.87 missed estimates by eight cents on a 7% rise in revenues.

As of this writing, William Roth did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/10/dow-jones-stocks-market-crash-charging-higher/.

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