The Dow Jones Industrial Average is an index made up of 30 blue-chip stocks that are meant to be representative of the U.S. economy. The Dow finished 2023 strong, posting a healthy gain of 13% for all of last year.
So far in 2024, the Dow 30, as the index is also known, has dipped 1% as markets try to find their footing heading into a new year. But investors needn’t worry. Analysts remain extremely bullish about many of the Dow components, even more so after some strong earnings reports were recently released.
The economy continues to exhibit strength, interest rates are expected to fall, and corporate earnings are holding up. Therefore, the Dow should have another stalwart showing in the year ahead. Let’s discuss three top-rated Dow stocks Wall Street analysts are loving now.
Apple (AAPL)
Shares of consumer electronics giant Apple (NASDAQ:AAPL) are up nearly 3% after analyst at Bank of America (NYSE:BAC) upgraded the stock to “buy” from “neutral” and increased their price target to $225 a share from $208 previously. Bank of America said Apple should benefit from higher growth rates, driven, in part, by new artificial intelligence applications and features. Early reviews of Apple’s new Vision Pro augmented reality headset have been very strong.
The upgrade from Bank of America was sorely needed. APPL stock endured a slew of downgrades to start the year, with many analysts pointing to a slowdown in sales of the company’s devices such as its iPhone and MacBook computer. The company’s share price has also been weighed down by an ongoing patent dispute related to its Apple Watch. News that China’s economy is slowing more than expected has also hurt Apple given that it gets nearly 20% of its revenue from the nation of 1.4 billion people.
With the latest bounce, Dow component Apple’s stock is now up 39% in the last 12 months.
Goldman Sachs (GS)
Analysts are loving Goldman Sachs (NYSE:GS) after the investment bank reported better-than-expected fourth quarter financial results. Analysts at Oppenheimer (NYSE:OPY), for one, raised their price target on GS stock to $491 a share, implying 31% upside from current levels. Also, Oppenheimer maintained a buy equivalent rating on the bank’s stock. The upgrades are a reversal from last year, when Goldman Sachs was missing financial targets and its stock slumping.
Goldman’s recently released Q4 numbers impressed. For the final months of 2023, the investment bank earned $5.48 per share. And this was much better than the $3.62 consensus forecast of analysts. The Q4 profit was up 51% from a year earlier.
Revenue came in at $11.32 billion compared to $10.80 billion that had been expected. While fees from investment banking declined 12% in the quarter, equity trading revenue rose 26% and revenue from wealth management grew 23% year over year (YOY).
GS stock is up 7% over the last 12 months.
Walmart (WMT)
Analysts are increasingly bullish on big box retailer Walmart (NYSE:WMT) coming out of the holiday sales period.
Analysts at TD Cowen named Walmart one of their “best ideas” for 2024. Further, they gave WMT stock a price target of $188 per share, which is 17% above the current share price. The analysts like the moves that Walmart is making into e-commerce, digital advertising, and artificial intelligence (AI). Also, they say it should help the company achieve a “new retail nexus.”
The upgrade from TD Cowen comes after Walmart’s third quarter 2023 financial results beat Wall Street estimates. The world’s biggest retailer reported earnings per share (EPS) of $1.53 versus $1.52 that was expected. Revenue amounted to $160.80 billion compared to anticipated $159.72 billion. Walmart said that its finances continue to get a lift from its grocery business. Additionally, its e-commerce sales increased 24% YOY in Q3. WMT stock has gained 15% in the last 12 months.
On the date of publication, Joel Baglole held a long position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
