Wall Street is on tenterhooks this week, waiting for two big catalysts to hit. First, they’re waiting on a Federal Reserve policy decision at a time when the markets are screaming for a rate cut. And second, they’re watching for a possible meeting between U.S. President Donald Trump and Chinese President Xi Jinping on the sidelines of the G20 meeting later this month.
As a result, the Dow Jones Industrial Average is in a holding pattern above the 26,000 level — continuing a sideways shuffle that has been in effect since January 2018. If a breakout is going to happen, it’s now or never as a breakdown could well call into question the vitality of this 10-plus-year bull market.
Last week, I highlighted several Dow components that were looking weak. Today, let’s look instead at components that are ready for an upside move. Here are four to watch:
Dow Jones Stocks to Buy: Apple (AAPL)
Apple (NASDAQ:AAPL) shares are pushing higher, testing above their 50-day moving average and looking longingly at the $200-a-share level lost back in early May. Now, the company is vulnerable to a worsening of the U.S.-China trade standoff. It could potentially get hit in both directions: first on a risk to its China-centered supply chain and second, with its image as an American tech giant in the eyes of Chinese consumers. However, hype is also building for the launch of the iPhone 11 later this year. Further, the company is looking to introduce two 5G phones in 2020.
The company will next report results on July 30 after the close. Analysts are looking for earnings of $2.10 per share on revenues of $53.5 billion. When the company last reported on April 30, earnings of $2.46 per share beat estimates by 10 cents on a 5.1% decline in revenues.
After months of malaise following two fatal crashes of its 737 MAX, a resulting regulatory grounding, and long-term damage to the company’s image, Boeing (NYSE:BA) shares have stabilized. They now look ready for a possible push back above its 200-day and 50-day moving averages. At some point, all the bad news gets priced in. The latest reports are that the FAA is expected to soon begin flight trials of the fix for the 737 MAX.
The company will next report results on July 24 before the bell. Analysts are looking for earnings of $1.81 per share on revenues of $19.6 billion. When the company last reported on April 24, earnings of $3.16 missed estimates by three cents on a 2% drop in revenues.
Disney (NYSE:DIS) shares are threatening to push up and over their prior high from late April, aiming for new record highs. Analysts at Citigroup recently upgraded the stock and assigned a $160-a-share price target, a move that would be worth a gain of nearly 15% from here. A successful opening for the new Toy Story 4 movie would help motivate such a move.
The company will next report results on Aug. 6 after the close. Analysts are looking for earnings of $1.77 per share on revenues of $21.5 billion. When the company last reported on May 8, earnings of $1.61 beat estimates by four cents on a 2.6% rise in revenues.
Home Depot (HD)
Shares of home improvement retailer Home Depot (NYSE:HD) are threatening to break up and out of a two-year long consolidation range with a push above the $210-a-share level. Lower long-term interest rates in recent months is helping reverse a slowdown in the U.S. housing market, with the company benefiting form the pickup in activity as both buyers and sellers focus on everything from new appliances to gardening.
The company will next report results on Aug. 20 before the bell. Analysts are looking for earnings of $3.09 per share on revenues of $31 billion. When the company last reported on May 21, earnings of $2.27 beat estimates by eight cents on a 5.7% rise in revenues.
As of this writing, William Roth did not have a position in any of the aforementioned securities.
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