The Dow Jones Industrial Average continues to underperform the S&P 500 in 2024. This gives investors a great opportunity for cheap dow stocks to buy.
The market index tracks 30 blue-chip American companies, offering exposure to some of the most impactful businesses across various sectors. While the index might not be synonymous with rapid, explosive growth, many dow stocks present compelling long term investment opportunities. As investors navigate the challenges of the U.S. stock market in 2024, several down components exhibit signs of significant upside.
Now, let’s discover the best dow stocks to buy in 2024 and beyond.
UnitedHealth Group (UNH)
UnitedHealth Group (NYSE:UNH) is a behemoth in the healthcare sector. The company’s two healthcare divisions, UnitedHealthcare and Optum Health, deliver a powerful combination for long term growth.
As the largest health insurer in the United States, UnitedHealth Group has demonstrated consistent growth and resilience. They have navigated challenging macroeconomic environments and regulatory headwinds extremely well. The company’s diversified revenue portfolio, including health insurance, pharmacy benefit management and healthcare services, has helped them outperform their peers.
Moreover, their monstrous FCF generation and consistent EPS growth should not be ignored. UNH stock delivered record earnings results in FY23, with EPS hitting a record $25.12 per share. Despite a $1.6 billion hit projected from cyber attacks this year, UNH has maintained its adjusted net earnings outlook of $27.50 to $28 per share. This makes UnitedHealth Group one of the best Dow stocks to buy now.
McDonald’s (MCD)
McDonald’s (NYSE:MCD) is a global icon in the fast-food industry, set to dominate the retail segment over the next decade. They boast a widespread presence and brand recognition that few can rival.
McDonald’s has been heavily scrutinized in the last few years, as major fast-food chains raised prices on the back of inflation. While this has been a tough pill to swallow for some, consumers are still willing to pay the price. The company has been investing significantly in digital innovation, embracing digital ordering and expanding its loyalty rewards program.
In FY23, McDonald’s grew its comparable sales by 9% YOY, with systemwide sales from loyalty members over $20 billion. Profitability increased significantly from the previous year, and the company set its sights on 8,176 net new restaurants by 2027. They are undergoing rapid transformation and leveraging Google Cloud for their robust loyalty rewards program, which continues to see strong double-digit growth.
Goldman Sachs (GS)
Goldman Sachs (NYSE:GS) is a leading name in global investment banking and asset management. The company’s diversified business model offers a degree of stability, characterized by their strong cash flows and diversified business model.
Goldman Sachs has a reputation for attracting top talent, and its strategic initiatives often set industry standards. The company dealt with a much tougher macroeconomic environment in 2023, largely driven by a slowdown in deal flow and higher interest rates. However, their asset and wealth management division saw continued strength. Management’s execution of strategic priorities has worked well, driving diversified growth in their latest Q1 FY24 results.
Assets under supervision increased by $36 billion during the quarter to a record $2.85 trillion. Revenue increased 16% YOY to $14.21 billion, with EPS up more than 30% YOY as markets continue to recover from uncertainties; GS’s strategic initiatives make it among the top Dow stocks to buy in 2024.
On the date of publication, Terel Miles 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.
