The Dow Jones Industrial Average is a major index is composed of some of America’s oldest and well-established companies. The index rose 13.7% last year, trailing both the S&P500 and Nasdaq Composite, which tend to track companies operating in novel sectors of the economy. Despite the Dow Jones being up for the year, there are still several companies trading below their 52-week high. Due to the stability of some of these companies, they might be worthwhile investments for investors who value cheap multiple and stable growth. Below are three Dow stocks to buy at an all-time low.
3M Company (MMM)
3M Company (NYSE:MMM) is a diversified manufacturer of various industrial products, consumer goods, health care products, and safety equipment. Unfortunately, the manufacturer’s stock has not had a great 2023 and its 2024 performance isn’t looking good either. In 2023, shares traded somewhat flat, falling only 3.3%. However, in 2024, shares have tumbled by more than 13% since the start of trading in January. Although the company delivered stellar Q4 results, 3M delivered a smaller than expected 2024 profit forecast.
In the first half of 2024, 3M intends to spin-off its healthcare business, which could lead to improved business development in subsequent quarters.
Value investors might take up an interest in 3M’s shares. They are currently trading at 8.8 times forward earnings, and the company offers a nice dividend, which yields more than 6% based on the company’s current stock price.
Honeywell (HON)
Founded in 1906, Honeywell (NASDAQ:HON) is a diversified industrials conglomerate. Their customers include end-markets such as aerospace, building technologies, performance materials, and safety and productivity solutions. Honeywell has been growing its revenue and earnings consistently, driven by a mix of strong organic growth, strategic acquisitions, and operational efficiency. For much of 2023, Honeywell was able to beat Wall Street earnings estimates. For example, in this year’s Q1 earnings report, the company was able to beat Wall Street’s estimates, with strong growth in its performance materials and aerospace segments. The same went for Q2 and Q3 earnings reports.
Unfortunately, Q4 saw sales growth moderate and a conservative 2024 guidance left investors underwhelmed. Still, HON shares are trading below their $209.71/share, and the stock’s valuation is around 19.7 times forward earnings.
These facts coupled with the industrial giant’s recent strides in developing quantum computing technologies could make HON shares attractive for long-term investors. Make sure you pick up this and the other Dow stocks to buy at an all-time low.
Dow (DOW)
Dow (NYSE:DOW) is another relatively sizable industrials stock trading below its 52-week high. The company specializes in a number of chemicals products, including plastics, performance materials, and coatings. The company had been struggling in 2023 due to a slower than expected recovery in China. As a result, Dow’s revenue declined by more than 21%. Lower energy rates also led to lower prices and therefore a smaller net revenue in 2023.
However, the chemical company’s management team did share some points of optimism. They believe oil prices will rise in the next few quarters, which could boost net sales, and its newer segments—telecommunications and automotive data centers—will see reinvigorated growth.
Dow currently trades at 17.7 times forward earnings and offers a consistent dividend, which could give investors with a long-term mindsight a decent buy-in opportunity. If you are looking for Dow stocks to buy at an all-time low, start here.
On the date of publication, Tyrik Torres did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
