3 Dow Stocks You’ll Regret Not Buying Soon: November 2023

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  • Here are three Dow stocks you’ll regret not buying soon: November 2023.
  • Walt Disney Co. (NYSE:DIS): The Mouse House’s Q3 print has renewed investor confidence. 
  • Goldman Sachs (GS): The investment bank is refocused on deal making and trading. 
  • Nike (NKE): The sneaker giant’s inventory levels are finally coming down. 
dow stocks - 3 Dow Stocks You’ll Regret Not Buying Soon: November 2023

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Despite being loaded with large cap blue-chip names, the Dow Jones Industrial Average has been a laggard this year. Since January, the Dow has risen only 3%. That compares to a gain of 15% in the S&P 500 index and an increase of 33% in the technology heavy Nasdaq.

While the underperformance has been disappointing, there are signs that the Dow, which is made up of 30 stocks, is starting to move in the right direction. Since the end of October, the index has climbed 6% higher amid signs that the market rally is starting to broaden out beyond stocks focused on artificial intelligence (AI) and weight loss drugs. With a mix of tech, consumer, industrial, healthcare, and financial stocks included in it, the Dow Jones Industrial Average can be expected to rise strongly should the market rally that began at the start of November have legs.

Here are three Dow stocks you’ll regret not buying soon: November 2023.

Walt Disney CO. (DIS)

Disney logo on a store front. DIS stock.
Source: chrisdorney / Shutterstock

Signs of life at Walt Disney Co. (NYSE:DIS). The Mouse House just posted third-quarter financial results that were much better than Wall Street had expected, and showed some much needed improvement at the entertainment company. For Q3, Disney reported earnings per share (EPS) of 82 cents versus 70 cents that analysts had penciled in for the company. Revenue totaled $21.24 billion compared to $21.33 billion that had been anticipated. Revenue rose 5% from a year ago.

The metrics that investors seemed to like most were the total subscriber number at Disney+, which rose seven million year-over-year to 150.2 million (compared to expectations for 148.2 million). Analysts and investors also cheered news that Disney is planning to cut costs by another $2 billion, bringing the total cost reductions this year to $7.5 billion. Disney attributed the better-than-expected earnings to a growing profit at its ESPN+ streaming service and growth at its theme parks.

While not out of the woods yet, the ship at Disney seems to finally be turning. DIS stock gained 6% immediately after its Q3 print. The share price is now flat on the year (down 0.79%). Buy now before the stock rises further.

Goldman Sachs (GS)

In this photo illustration the Goldman Sachs Group (GS) logo displayed on a smartphone screen and a stock market graph in the background
Source: rafapress / Shutterstock.com

U.S. investment bank Goldman Sachs (NYSE:GS) is another Dow component that looks to be improving after a sharp downturn. The leading Wall Street firm reported better-than-expected Q3 results due to a boost in bond trading and GS stock has risen 4% over the last month. Goldman reported Q3 EPS of $5.47, which was better than the $5.31 forecast by analysts. Revenue came in at $11.82 billion, which also beat expectations for $11.19 billion.

The improved results come as Goldman Sachs returns to its traditional strengths of deal making and trading after making a costly misstep into consumer banking. In September, the investment house was a lead underwriter on several large initial public offerings (IPOs) that took place, including those of online grocery retailer Instacart (NASDAQ:CART) and British chipmaker Arm Holdings (NASDAQ:ARM). In Q3, trading and advisory services accounted for two-thirds of Goldman’s revenue.

While it’s on an upswing now, GS stock is still down 6% on the year and looks cheap trading at 15 times future earnings. It also offers a quarterly dividend of $2.75 per share, giving it a yield of 3.38%.

Nike (NKE)

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Since its most recent financial results were issued at the end of September, Nike’s (NYSE:NKE) share price has gained 19%, including an 8% increase in the last month. The athletic shoe and apparel maker reported that its revenue rose 2% for its fiscal first quarter from a year earlier to $12.9 billion. While that was slightly less that the $13 billion expected, Nike’s profit came in much stronger than anticipated at 94 cents per share, which beat consensus estimates of 76 cents.

Nike also won over investors by reaffirming both its fiscal second-quarter and full-year guidance, saying it still expects revenue to grow in the mid-single digits for the entire year, matching Wall Street’s outlook. Best of all, the company announced that its inventories declined 10% in the latest quarter from a year ago. Previously, Nike had been stuck with high inventory levels since the end of the COVID-19 pandemic. Also encouraging were sales in China, which rose by 5% from a year earlier.

NKE stock is still down 10% on the year, providing a buy-the-dip opportunity.

On the date of publication, Joel Baglole held a long position in DIS. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.


Article printed from InvestorPlace Media, https://investorplace.com/2023/11/3-dow-stocks-youll-regret-not-buying-soon-november-2023/.

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