7 Dow Stocks to Buy on the Dip: February 2024


  • Apple (AAPL): The tech giant’s stock slumped going into its recent earnings print, presenting a buying opportunity. 
  • McDonald’s (MCD): A rare miss on its quarterly sales figures has the restaurant chain’s stock down 5%. 
  • Nike (NKE): The sneaker company’s share price has been terrible over the past year. But it now looks to have hit a bottom. 
  • Read on for more Dow stocks to buy on the dip today!
Dow stocks to buy - 7 Dow Stocks to Buy on the Dip: February 2024

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Stocks such as Walt Disney (NYSE:DIS) and Walgreens Boots Alliance (NASDAQ:WBA) have been among the worst performers. And while investors should steer clear of those stinkers, there are a few blue-chip names worth buying on the dip. Here are seven Dow stocks to buy on the dip: February 2024.

Apple (AAPL)

Apple (AAPL) logo brand and text sign on entrance facade store American multinational boutique corporation dealership shop. Apple Layoffs
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In the lead-up to its recent fourth-quarter earnings, Apple’s (NASDAQ:AAPL) stock fell from a 52-week high. Its market cap dropped below $3 trillion. And it lost the title of the world’s most valuable publicly traded company to Microsoft (NASDAQ:MSFT). Unfortunately, Apple slipped even more after the Q4 results showed a 13% decline in iPhone sales across China. The good news is much of the hand-wringing is overdone, and there are still good reasons to buy Apple shares.

While it is true that sales of Apple’s electronic devices such as its iPhone, iPad, and MacBook computer have slowed, the services side of the company has more than made up for any shortfall. In addition, Apple still beat Wall Street’s expectations on the top and bottom lines with its Q4 print. Revenue rose in the quarter, breaking a streak of four consecutive quarters of declines.

Apple is one of the top Dow stocks to buy before it resumes its growth trajectory.

McDonald’s (MCD)

McDonald's restaurant in Thailand.
Source: Tama2u / Shutterstock

Another one of the top Dow stocks to buy on dips is McDonald’s (NYSE:MCD). After the quick-service restaurant chain reported mixed financial results, the stock slipped. However, McDonald’s fourth-quarter results were strong. For example, MCD reported fourth-quarter earnings per share (EPS) of $2.95, which topped Wall Street estimates of $2.82. Sales increased 8% year over year, with total revenue coming in at $6.41 billion, which was a little less than the $6.45 billion forecast by analysts.

McDonald’s blamed the revenue miss on the escalating conflict in the Middle East, which has hurt its global sales. Outside the Middle East, all other global markets, including China, reported positive same-store sales growth. Domestic same-store sales at McDonald’s rose 4.3%, in line with Wall Street forecasts. MCD stock is down 4% on the year and ripe for the picking.

Microsoft (MSFT)

Microsoft logo close up. Microsoft (MSFT) Flagship Store Fifth Avenue, Manhattan, NYC.
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Next up on this list of top Dow stocks to buy is Microsoft (NASDAQ:MSFT). While the tech giant’s results managed to beat expectations on Wall Street, they didn’t blow away estimates. Plus, there was very little mention of artificial intelligence (AI) to be found in its report. This appears to have left investors feeling underwhelmed, which led to a pullback in the MSFT stock. However, investors should buy the dip.

While Microsoft is only now starting to monetize AI, the company continues to demonstrate strong growth in its cloud-computing unit, with revenue from its Intelligent Cloud segment rising 20% from a year earlier to $25.88 billion. During Q4 2023, Microsoft closed its $68 billion acquisition of video game publisher Activision Blizzard, its largest deal ever. The company has also announced custom cloud microchips and started selling a $30 monthly Copilot AI add-on with its software bundles.

Chevron (CVX)

Chevron (CVX) logo on gas station sign with "diesel" and "food mart" written underneath
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U.S. oil giant Chevron (NYSE:CVX) has seen its stock fall 10% over the last 12 months as earnings have been eroded by a decline in crude prices. After posting record profits in 2022 when crude oil was trading above $100 a barrel, Chevron has had to contend with a steady decline over the last year. However, there are still reasons to buy CVX stock. These include a dividend payment that the company just increased by 8%, taking the yield on the stock to 4.28%.

Chevron now pays out a strong quarterly dividend of $1.63 per share. Despite its profit in 2023 declining by 40%, the company still returned a record $23.60 billion to shareholders by paying out $11.30 billion in dividends and buying back $14.90 billion of its own stock. And although crude oil is currently trading around $73.50 per barrel, Chevron still managed to produce a record 3.1 million oil-equivalent barrels per day last year as the company boosted its capital expenditures.

JPMorgan Chase (JPM)

Chase Bank logo and storefront
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While it hasn’t been immune to the bank stock downturn, shares of JPMorgan Chase (NYSE: JPM) have fared better than most of its peers. Over the past year, JPM stock has gained 23%, including a 2% increase so far in 2024. The world’s biggest lender with $4 trillion of assets under management has proven to be more immune to high-interest rates than smaller banks.

While JPMorgan reported mixed Q4 2023 financial results, the print was due to a $3 billion fee it was forced to pay related to the government’s seizure of failed regional lenders. However, despite the fee it paid to the U.S. Federal Deposit Insurance Corporation, JPMorgan is still viewed as having come out of last year’s regional banking crisis as a winner. It acquired First Republic, a midsized lender to wealthy families, amid the collapse of several regional lenders across the U.S. First Republic is already having a positive impact on JPMorgan Chase’s earnings, according to the bank.

Nike (NKE)

A stack of red Nike (NKE) shoe boxes.
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Sneaker giant Nike (NYSE:NKE) has been one of the worst-performing Dow components over the last few years. Over the last year, for example, the stock plummeted about 20%. Not helping, its share price plunged 12% in a single day in December after its sales guidance for 2024 was lowered. The good news is that Nike’s stock looks to have bottomed right around $100 per share. Each time the share price dips below that level, it quickly regains its footing.

Patient investors who take a position in NKE stock now are likely to be rewarded with future gains coming off the current bottom. And while Nike’s most recent earnings print was mixed, it contained some encouraging data. For example, the company’s gross margin rose for the first time in 18 months and reached 44.6%; inventories declined 14%; and sales in China, an important market for the company, rose 10.1%, which was the fastest pace of growth since May 2023.

It will likely take time to recover, but Nike is a Dow stock to buy on the dip.

Visa (V)

several Visa branded credit cards
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While Visa (NYSE:V) has been volatile, investors might want to buy one of the dips. After all, the company just reported Q4 2023 financial results that beat analysts’ forecasts across the board. It also issued upbeat guidance as consumer spending remains resilient in the face of inflation and high-interest rates. It also posted EPS of $2.41, which topped Wall Street estimates of $2.34.

Revenue in Q4 2023 totaled $8.60 billion, up 9% from a year earlier and ahead of forecasts that called for $8.50 billion in sales.

Looking ahead, Visa said that it expects revenue growth in the current first quarter of 2024 in the “upper-mid to high-single digits” and profit growth in the “high-teens.” Visa said its payment volumes, which cover the year-end holiday shopping season, rose 8% in Q4 2023, while cross-border volumes increased 16%. The company’s total transactions in Q4 rose nearly 10% to $57.50 billion.

On the date of publication, Joel Baglole held long positions in AAPL and MSFT. 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/2024/02/7-dow-stocks-to-buy-on-the-dip-february-2024/.

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