The third quarter of 2024 is shaping up to be a very interesting time. Wall Street is largely anticipating that the Federal Reserve will cut interest rates in September.
While bullish, this news could potentially trigger a stock market correction. This can be characterized as a ‘’sell the news’’ event, in which the release might already be priced into the market. Therefore, investing in Dow stocks can be a prudent strategy to provide an extra layer of stability during this time.
These companies are known for their consistent performance and dependability when markets are in flux. Additionally, with the 2024 Presidential Election just a few months away, stock market volatility tends to rise. If you’re looking for a safe haven bid to navigate the turbulent waters, these 3 established companies are stellar choices.
Now, let’s unpack the 3 best Dow stocks to buy in Q3 2024!
Walmart (WMT)
Walmart (NYSE:WMT) stands out as one of the top Dow stocks to buy for Q3. The company’s recent stellar first-quarter results and robust omnichannel strategy signals potential further upside in the second half of 2024.
If you’re not living under a rock, there is a chance that you’ve heard of or shopped at Walmart. As the world’s largest retail giant, Walmart is known for its everyday low-pricing strategy, which has garnered it a loyal customer base. Moreover, the company’s omnichannel strategy continues to drive diversified growth across all segments of the business. This has contributed to its impressive global e-commerce sales growth and continued strength in international markets. In Q1 FY25, revenue increased 6% year over year to $161 billion. Global e-commerce sales increased 21% from the year prior, with consolidated gross margin up 42 basis points. Additionally, its international business grew handsomely, with net sales up 10.7%, led by FlipKart, China, and Walmex. If you’re looking for a combination of growth and stability, WMT stock should be one of the first picks on your list.
American Express (AXP)
American Express (NYSE:AXP) is another Dow stock that deserves your attention in Q3 2024. The company’s strong brand recognition, growing earnings, and track record of shareholder returns position it well to weather future storms.
American Express is off to an incredible start in 2024, with the stock significantly outperforming the S&P 500 Index. Its focus on premium card offerings targeting its affluent customer base for personal, business, and travel has been paying off considerably. Furthermore, management has also honed in on the Millenial and Gen Z segments in the last year. CEO Stephen Squeri emphasized the long-term upside potential of these generations, given their robust spending habits. In the first quarter, revenue increased 11% year over year to $15.8 billion. Earnings per share increased 39% year over year to $3.33 per share, with new card acquisitions up sequentially to 3.4 million. In addition, the Millenial and Gen Z customer base were outliers, accounting for over 60% of new customer accounts. With an 11% CAGR in its dividend over the last decade, AXP stock is among the best Dow stocks to buy now.
Goldman Sachs (GS)
Goldman Sachs (NYSE:GS) is the final Dow stock on the list that is a leader in the investment banking industry. After reporting monster Q2 earnings results this month, its valuation still looks attractive at the current price.
Goldman Sachs is a stalwart in the financial services industry. Its diversified range of service offerings from investment banking to asset management provides a solid foundation for growth and stability. After an intense past few years of disappointing financial results, the company is experiencing a rapid turnaround. Its investment banking division, which is its bread and butter, continues to rebound. Increased deal flow in equity and debt underwriting has significantly bolstered its financial performance. In the second quarter, revenue increased 17% year over year to $12.73 billion. Net earnings more than doubled to $3.04 billion, with investment banking fees up 21% from the year prior. With technology stock valuations reaching unsustainable levels in 2024, Goldman Sachs’ forward price to earnings of 14 is a bargain in comparison.
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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
