CAT - Caterpillar Inc.
| Previous Close | 142.75 |
| Open | 142.55 |
| Bid | 139.81 x 800 |
| Ask | 140.38 x 800 |
| Day's Range | 139.26 - 142.70 |
| 52 Week Range | 111.75 - 150.55 |
| Volume | 2,401,574 |
| Avg. Volume | 2,998,508 |
| Market Cap | 77.582B |
| Beta (5Y Monthly) | 1.51 |
| PE Ratio (TTM) | 13.35 |
| EPS (TTM) | 10.52 |
| Earnings Date | Jan 30, 2020 |
| Forward Dividend & Yield | 4.12 (2.89%) |
| Ex-Dividend Date | Jan 16, 2020 |
| 1y Target Est | 149.91 |
- InvestorPlace
Dow Jones Today: Coronavirus Vexes Stocks
The latest strain of the coronavirus, a deadly respiratory illness believed to have originated in central China, has spread around that country, forcing Beijing to halt travel for more than 35 million Chinese citizens. Plaguing stocks Friday wasn't just news of the virus's spread in China, but reports of a second U.S. case, this time in Chicago.Source: Provided by Finviz * The S&P 500 slumped 0.90%. * The Dow Jones finished lower by 0.58%. * The Nasdaq Composite tumbled 0.93%. * On a day when winners were in short supply, Intel (NASDAQ:INTC) was easily the best-performing Dow stock following a strong fourth-quarter earnings report and exciting first-quarter guidance.Getting back to the coronavirus fears for a moment, there were reports Thursday that a case may have emerged in Texas and that was followed by news that the Centers for Disease Control and Prevention confirmed at least two cases in Illinois. The CDC said the situation is "rapidly evolving."While health officials have stopped short of comparing this viral outbreak to the SARS epidemic of 2003 that killed about 800 people around the world, these type of headlines do have a way of plaguing riskier assets.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Recession-Resistant Services Stocks to Buy However, history indicates that the negative market reaction surrounding these type of events is usually confined to a short time frame. When fears abate, stocks often rally. Let's hope that's the case, because in late trading only six of the 30 Dow stocks were in the green. Thank Goodness for IntelAs noted above, Intel was the lead of the Dow pack today and it wasn't a close competition. For the fourth quarter, Intel reported earnings of $1.52 on revenue of $20.21 billion, easily topping Wall Street estimates of $1.25 per share and revenue of $19.23 billion.But those numbers are in the past. What really sparked the really in Intel stock today was the company's 2020 forecast of earnings of $5.00 on revenue of about $73.50 billion, ahead of consensus projections of $4.68 per share and revenue of $72.25 billion.The company also offered up strong commentary on data center chip demand, a theme that could also benefit rivals Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD)."However, we believe Intel has been ably navigating the headwinds, via concerted efforts to rein in non-essential spending while investing in critical process and design technologies (10- and 7-nm, 5G, Artificial Intelligence, and automotive)," said Morningstar in a note out earlier today. "We are raising our fair value estimate for wide-moat Intel to $70 per share from $65, as we incorporate the stronger near-term performance and outlook. Shares were up during after-hours trading and look fairly valued at current levels." American Express Charges HigherIntel reported Thursday after the close, leaving American Express (NYSE:AXP) as the lone Dow component delivering earnings today and investors cheered the report, sending the stock higher by 2.81%. That was good enough to make AXP the second-best Dow name today after Intel.American Express said it earned $2.03 a share on revenue of $11.37 billion in the last three months of 2019, slightly ahead of Wall Street estimates calling for earnings of $2.01 on revenue of $11.36 billion.Like Intel, AXP offered strong full year guidance of $8.85 to $9.25 of earnings compared with the consensus estimate of $8.98 per share. It Looked Like a Trade War DayWhile there wasn't wrangling on the trade front today, the group of Dow Jones losers read as though President Trump sent one of his notorious pre-Phase I tweets vilifying China. In other words, the coronavirus plagued a slew of China-sensitive stocks today.That scenario had Caterpillar (NYSE:CAT), materials name Dow Inc. (NYSE:DOW) and Nike (NYSE:NKE) were among the Dow's worst performers today. Boeing: The Believe It or Not SequelOn another day of challenging headlines, Boeing (NYSE:BA) was tussling with AXP to be the second-best Dow stock today. That's surprising when considering at least one ratings agency sees Boeing's credit rating as vulnerable in the face of ongoing 737 Max delays."[The delay] will result in a longer period of cash outflows than we expected for 2020, as well as less debt reduction in the latter half of the year because Boeing will deliver fewer aircraft," said S&P in a note. Bottom Line on the Dow Jones TodayHopefully, China and the other countries affected by the coronavirus are able to limit deaths and a handle on the virus over the near-term because that would be a win for humanity.For the capitalists out there, the virus is clearly affecting markets and markets have other things to contend with, including another earnings avalanche next week. That includes 10 -- a third of the Dow Jones Industrial Average -- stepping into the earnings confessional.As of this writing, Todd Shriber did not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post Dow Jones Today: Coronavirus Vexes Stocks appeared first on InvestorPlace.
- Reuters
US STOCKS-The S&P 500 has worst day since October as virus fears mount
Wall Street fell in a broad sell-off on Friday, as investors fled equities on growing concerns over the scope of the coronavirus outbreak, capping the S&P 500's worst week in six months. All three major U.S. stock averages turned sharply negative, with the S&P 500 seeing its biggest one-day percentage drop in over three months after the Centers for Disease Control and Prevention confirmed the second case of the virus on U.S. soil, this time in Chicago.
ReutersUS STOCKS-Wall Street set for weekly loss on gathering virus fears
Wall Street lost ground on Friday as mounting worries over the scope of the coronavirus outbreak overshadowed positive corporate earnings. All three major U.S. stock averages extended their losses after the Centers for Disease Control and Prevention confirmed the second case of the virus on U.S. soil, this time in Chicago. For the holiday-shortened week, all three indexes are on course to post a decline with the Nasdaq set to snap a six-week winning streak.
- Zacks
Analysts Estimate Caterpillar (CAT) to Report a Decline in Earnings: What to Look Out for
Caterpillar (CAT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
- Zacks
Manufacturing - Construction & Mining Outlook: Prospects Bright
Manufacturing - Construction & Mining Outlook: Prospects Bright
- PR Newswire
Caterpillar Foundation Donates $250,000 to Red Cross Relief Efforts as Australia Battles Bushfire Crisis
As bushfires rage across Australia, the Caterpillar Foundation, the philanthropic arm of Caterpillar Inc. (NYSE: CAT), is making a $250,000 donation to the Australian Red Cross to aid in relief efforts. The unprecedented fires have taken lives, destroyed homes and devastated millions of acres of land and the region's wildlife.
- MarketWatch
Dow down 182 points on losses in Travelers, Dow Inc. stocks
DOW UPDATE The Dow Jones Industrial Average is falling Thursday morning with shares of Travelers and Dow Inc. seeing the biggest declines for the index. The Dow (DJIA) was most recently trading 182 points, or 0.
- InvestorPlace
Dow Jones Today: Stocks Still Rise Despite Mixed Bag With Earnings
With more marquee companies, including some members of the Dow Jones Industrial Average, stepping into the earnings confessional over the last 24 hours, there were ample headlines to move stocks Wednesday. While there was action to be had, gains for broader benchmarks were small.Source: Provided by Finviz * The S&P 500 rose 0.02% * The Dow Jones finished lower by 0.03% * The Nasdaq Composite gained 0.14% * Thanks to a surprisingly strong fourth-quarter earnings report, IBM (NYSE:IBM) was a Dow Jones leader today, gaining 3.3%.Industrial stocks were an obvious spot of weakness for the Dow Jones with each of the index's members from that sector trading lower today. Once again, Boeing (NYSE:BA) was an offender, shedding 1.58%, even after CEO David Calhoun said the company plans to continue paying its dividend "unless something dramatic changes."On the other hand, that doesn't mean the payout will be increased as the company struggles with the 737 Max issue. Caterpillar (NYSE:CAT) was another industrial offender, dropping almost 2% on light news flow. That company reports earnings on Jan. 31.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Buy as the 2020 Presidential Election Approaches Overall, 18 of 30 Dow stocks were higher in late trading. Hooray For IBMIBM, a company with a history of earnings disappointments and subsequent poor reactions by the stock, bucked that ominous trend today. Big Blue said it earned $4.71 per share on revenue of $21.80 billion in the fourth quarter, beating estimates calling for earnings of $4.68 cents and revenue of $21.64 billion."We ended 2019 on a strong note, returning to overall revenue growth in the quarter, led by accelerated cloud performance," said IBM CEO Ginni Rometty in a statement. "Looking ahead, this positions us for sustained revenue growth in 2020 as we continue to help our clients shift their mission-critical workloads to the hybrid cloud and scale their efforts to become a cognitive enterprise."Some analysts were mostly encouraged by IBM's results."Consulting revenue saw a lift of 4% year-over-year growth in the quarter, but that did not overcompensate for global business services', or GBS', roughly flattish revenue growth in the quarter, which is suffering weak demand for business process outsourcing," said Morningstar in a note out earlier today. "We're encouraged that the consulting business is not suffering instead, as consulting is a much higher-margin business, and we consider it to be a driver of other IBM offerings. Moreover, we expect business process outsourcing revenue to decline throughout the IT services industry." Small Earnings DisappointmentJohnson & Johnson (NYSE:JNJ) traded slightly lower Wednesday after the company said it earned $1.88 a share on sales of $20.74 billion in the fourth quarter compared with Wall Street estimates of $1.87 per share on revenue of $20.80 billion.The devil in the details was $264 million in legal expenses, but that's well below the $1.29 billion JNJ allocated to the same purpose in the year earlier period.In better news, JNJ's "pharmaceutical business posted revenue of $10.54 billion, a 3.5% increase year over year. The company's consumer unit, which makes beauty products such as Neutrogena, generated $3.5 billion in revenue, up 0.9% from a year earlier," reports CNBC. Pre-Earnings PopsIn advance of its Thursday after-the-close earnings report, Intel (NASDAQ:INTC) surged again today, tussling with IBM for top honors in the Dow. Cascend Securities reiterated a "buy" rating on Intel, this time lifting its price target on the stock to $75 from $65. * 7 Healthcare Stocks With 100% Street Support Consumer staples giant Procter & Gamble (NYSE:PG) reports before the bell tomorrow and traded slightly higher today in advanced of that announcement. Bottom Line on the Dow Jones TodayIn aggregate, the Wednesday performances of the Dow, Nasdaq and S&P 500 were by no means impressive, but the aforementioned IBM report could be something to build on, particularly if Intel, a better gauge of risk appetite, meets and beats tomorrow.While most prognosticators are expecting modest upside for stocks this year, Credit Suisse's Jonathan Golub on Tuesday boosted his year end S&P 500 target to 3,600 from 3,425.As of this writing, Todd Shriber did not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy as the 2020 Presidential Election Approaches * 5 Dividend Stocks With Low Payout Ratios and High Yields * 4 Post-Holiday Retail Stocks Still Worth a Look The post Dow Jones Today: Stocks Still Rise Despite Mixed Bag With Earnings appeared first on InvestorPlace.
- Zacks
Caterpillar (CAT) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Caterpillar (CAT) closed at $147.78, marking a -0.06% move from the previous day.
- PR Newswire
Caterpillar Inc. to Announce Full-Year and Fourth-Quarter 2019 Financial Results on January 31
Caterpillar Inc. (NYSE: CAT) will release full-year and fourth-quarter 2019 financial results at 5:30 a.m. CST on Friday, January 31. The release will be available at caterpillar.com/earnings and the full text of the news release will also be available on PR Newswire at approximately 5:30 a.m. CST. The news release will be furnished to the U.S. Securities and Exchange Commission (SEC) via a Current Report on Form 8-K in compliance with applicable SEC rules.
- GuruFocus.com
US Indexes Continue Gains Thursday
Dow Jones closes at 29,297.64 with a gain of 0.92% Continue reading...
- Yahoo Finance
How farms can be part of the climate change solution: US Agriculture Secretary
How farms can be part of the climate change solution: US Agriculture Secretary Sonny Perdue
- Benzinga
Trinity Industries Names New Chief Executive Officer
Dallas-based Trinity Industries (NYSE: TRN) has named E. Jean Savage as the company's new chief executive officer and president, effective Feb. 17. Savage is currently the vice president of the surface mining and technology division for construction equipment manufacturer Caterpillar (NYSE: CAT).
- Market Exclusive
Market Morning: Trade Deal Signing, Bitcoin Fracas, Trump Rages at Apple, Jet Fuel Rain
Do US Farmers Trust President Trump? We will see. The “Phase One” trade deal between the United States and China will, once again supposedly, be signed today, the Ides of January. Despite previous reports that China has backed out of firm commitments to increase its purchases of US agricultural products, it now seems that somehow […]The post Market Morning: Trade Deal Signing, Bitcoin Fracas, Trump Rages at Apple, Jet Fuel Rain appeared first on Market Exclusive.
- PR Newswire
Caterpillar Announces Officer Retirement
Caterpillar Inc. (NYSE: CAT) announced today that E. Jean Savage, currently vice president of the Surface Mining & Technology Division, has elected to retire.
- Simply Wall St.
Caterpillar Inc. (NYSE:CAT) Passed Our Checks, And It's About To Pay A US$1.03 Dividend
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be...
- Financial Times
Red states: Trump country's love affair with Chinese investment
It is late October in Jonesboro, Arkansas, a long way from the White House and a long way from the trade war. To launch the Anhui, China-based company’s 125,000 sq ft facility in Jonesboro, southern businessmen and their new Chinese colleagues formed an awkward line on stage behind a red ribbon, each holding a pair of golden scissors and looking at each other for the cue to make the cut. Local politicians were presented with gifts from Anhui, including a traditional painting of galloping horses — a Chinese metaphor for prosperity and success — while a giant screen played a video of factory workers in China performing a choreographed marching band routine.
- Investopedia
Bearish Engulfing Candles Appear on All Indexes
As investors seem to be having second thoughts, we look inside the industrial sector and report on retreating small-cap stocks.
- Simply Wall St.
Is Caterpillar Inc. (NYSE:CAT) Potentially Undervalued?
Today we're going to take a look at the well-established Caterpillar Inc. (NYSE:CAT). The company's stock saw a...
- Zacks
Caterpillar (CAT) Dips More Than Broader Markets: What You Should Know
Caterpillar (CAT) closed the most recent trading day at $146.38, moving -1.32% from the previous trading session.
- InvestorPlace
Dow Jones Today: Middle East Focus Factors Into The Equation Again
Broadly speaking, Tuesday was another sluggish day for riskier assets. The dollar rose and oil declined as many market participants wait to see what happens next in the intensifying showdown between the U.S. and Iran.Source: Provided by Finviz * The S&P 500 lost 0.28% * The Dow Jones Industrial Average dropped 0.42% * The Nasdaq Composite gave up 0.03% * With some of the wind coming out of oil's sails today, Exxon (NYSE:XOM) and Chevron (NYSE:CVX) ranked as two of the Dow's worst performers, each losing more than 1%.By no means was it a terrible Tuesday despite the fact that 23 of 30 Dow Jones stocks were lower in late trading. There was some other good news, albeit on an anecdotal level, including that of a well-known market forecast that has notoriously been reluctant to endorse higher S&P 500 targets finally coming around.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"Francois Trahan, head of U.S. equity strategy at UBS Group AG, raised his year-end target for the S&P 500 Index to 3,250 from a previous target of 3,000 set in November," reports Bloomberg.Trahan's prior call of 3,000 was one of the lowest on Wall Street.In economic news, the U.S. trade deficit declined by about $43.1 billion in November due in large part to the trade war with China."The deficit with China decreased $2.2 billion in November to $25.6 billion owing to a $1.4 billion increase in exports and an $800 million decline in imports," according to CNBC. * 7 Stocks That Are Screaming Buys Right Now With that, let's have a look at some of Tuesday's winners and losers. Another Up Day For BoeingBoeing (NYSE:BA) added to Monday's gains, jumping as much as 1.38% today after the company said it's recommending pilot simulator training for those who will fly the 737 MAX jet, when that controversial plane finally gets airborne again."This recommendation takes into account our unstinting commitment to the safe return of service as well as changes to the airplane and test results. Final determination will be established by the regulators," said the company in a statement.There's also a rumor floating around that Warrren Buffett's Berkshire Hathaway (NYSE:BRK-A) is building a position in Boeing. That coupled with the Iran drama boosting defense stocks are factors helping Boeing start 2020 on a strong note. Legal NewsJohnson & Johnson (NYSE:JNJ) still faces an array of courtroom issues this year, but the company appears to have put at least one element of that to bed amid news that a California talc trial has been halted after the judge told jurors a settlement has been reached. Shares of JNJ posted a modest gain. Rough Day For IndustrialsAside from Boeing, the Dow's other industrial names -- Caterpillar (NYSE:CAT), 3M (NYSE:MMM) and United Technologies (NYSE:UTX) -- were stung today by another slack manufacturing data point."Latest data showed new orders for U.S.-made goods fell in November, pulled down by steep declines in demand for machinery and transportation equipment, pointing to sustained weakness in manufacturing," according to Reuters.Should Caterpillar and 3M be Dow laggards again, that puts some burden on Boeing to carry the Dow's industrial exposure and for other groups - namely technology - to prop up the blue chip index this year. Bottom Line on the Dow Jones TodayI noted yesterday that fourth-quarter earnings are a potential catalyst or trouble spot for stocks over the near-term and while it's not a marquee report, investors will get an earnings taste from Dow component Walgreens Boots Alliance (NASDAQ:WBA) when the pharmacy operator reports quarterly results tomorrow.Wall Street expects WBA to earn $1.41 per share on sales of $34.6 billion. Remember, WBA was one of the worst-performing names in the Dow last year, so this report could go a long way toward bolstering sentiment on the stock.As of this writing, Todd Shriber did not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks That Are Screaming Buys Right Now * 7 Industrial Stocks to Buy for a Strong New Year * 7 Investing Resolutions to Follow in 2020 The post Dow Jones Today: Middle East Focus Factors Into The Equation Again appeared first on InvestorPlace.
- MarketWatch
Dow drops 100 points on losses for Chevron, Merck shares
DOW UPDATE The Dow Jones Industrial Average is falling Tuesday morning with shares of Chevron and Merck delivering the stiffest headwinds for the price-weighted average. Shares of Chevron (CVX) and Merck (MRK) have contributed to the blue-chip gauge's intraday decline, as the Dow (DJIA) was most recently trading 108 points, or 0.
- InvestorPlace
3 Dow Jones Stocks That Are Ready to Pop
The equity markets are showing extraordinary resilience, even when faced with the prospects of World War III. The indices refuse to fall far from their all time highs. Coming into the Monday session, the media was preparing coverage of a crisis. Instead the markets went green and Wall Street is showing no fear. So there continue to be opportunities, especially among the big cap DOW stocks.The volatility index is spiking but has so far failed to hold its gains. Furthermore, the actions on Wall Street suggest that there is no real fear yet. Even on Monday morning when investors were supposed to be fretting the conflict with Iran, there were strong bids for frothy stocks. Scared markets do not buy speculative equities. They hunker down and run for safety like in bonds. * 10 Stocks That Every 30-Year-Old Should Buy and Hold Forever Under such bullish conditions, today we highlight three DOW stocks that are looking like they want to spike soon. All three are still facing major issues but there seems to be light at the end of the tunnel for each. Caterpillar (NYSE:CAT), Boeing (NYSE:BA) and International Business Machines (NYSE:IBM) are overcoming tremendous trepidation, so their stocks are near relief zones.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Dow Jones Stocks That Are Ready to Pop: Caterpillar (CAT)Source: Charts by TradingView For the last two years it felt like Caterpillar stock had a curse against it. Every potential substantial rally failed. It didn't help that CAT stock was in the direct line of fire from the economic war with China. Now that both sides are playing nice and seem intent on a deal, CAT's bullish breakout setup has a real chance of materializing. This time it has a confluence of at least two technical reasons to spike. There is a breakout from a descending channel, and another from overcoming a prior failure level.Since the October correction of 2018, CAT stock had stalled below $145 per share. Recently, the bulls were finally able to overcome it. Now they can use this neckline to build upon the momentum and recover the highs. If and when they get to $160, the bulls will face stiff resistance.Earnings are coming soon so maybe management can give Wall Street a concrete reason to buy it up with vigor. But this is a knife that can cut both ways because we all still remember how a few words from the CFO can cause a 20% debacle in the stock chart. Maybe now management will deliver an upbeat outlook, especially if they no longer see hindrance from the Chinese economic war.Unlike many frothy stocks that are rallying these days, CAT has value. So the move if and when it comes is justified. Fundamentally, Caterpillar stock is cheap. It sells at a modest 14 price-to-earnings ratio and 1.5 times sales. So owning it here is not likely to be a major financial debacle in the long term. Besides, from the charts, there is proven support through $127 per share. International Business Machines (IBM)Source: Charts by TradingView For years Wall Street has been expecting IBM to make the turn into the new tech world. For some reason they can't seem to make it like say Microsoft (NASDAQ:MSFT) did. Nevertheless, management still gets a pass on the subject so for now we can trade the charts where the opportunity lies.The IBM stock price range is tight. For the last year it has set higher-lows and lower-highs and now it is in a pinpoint jam. It has also consolidated for the last few weeks between $131 and $137 per share. So a breach of either sides of this is likely to have momentum in that direction.Since the pattern of lower-highs has formed a deep wedge bumping up above a set of relatively flat base, the breakout to the upside is more likely than not. So the better bet is to take a position alongside the bulls in this first quarter. Earnings are coming soon, so it is up to management to not foil the setup. These events are binary in the short term, so there is that risk to consider. The last four reactions to earnings were two sharp rallies versus two sharp selloffs. * 7 Stocks to Sell to Start the New Year Fresh Long term, IBM is cheap in absolute terms. It has a 13 price-to-earnings ratio and it even pays a hefty 4.5% dividend yield. So maybe that is why investors are patient with the turnaround efforts. Even if the breakout fails, then the damage should be contained, especially if investor time frame is long. Boeing (BA)Source: Charts by TradingView There is hardly a day that doesn't bring bad news for Boeing stock. Just this week we learned of potential wiring issues with the 737 Max. Nevertheless, the stock is doing much better than it should given the negativity that surrounds it. This is perhaps because for years, BA stock had been a monster.Investors liked its visibility as it had about a decade worth of backlog. So it is hard to bet against a company that is sold out for ten years, and it only has one other real competitor who is also fully booked. Meaning, the clients have no choice but to put up with BA and its delays.The tragically sad accidents that the Max had may have changed the outlook a little. Even though BA stock is not a catastrophe yet, this time there is real risk of prolonged repercussions. The 737 Max is still grounded and in spite of BA's own optimism, consensus is that it will be out of commission for a long while.But today's opportunity is based on the charts. Despite of all the trepidation that BA stock has had for months, it has proven support below $320 per share. It only broke below $300 during the horrendous market-wide correction two Christmases ago.This is a bet I can make using options to generate income out of thin air. Buying BA shares requires a lot of hopium to profit until this whole mess is behind it. But meanwhile, selling the BA May $280 put brings a potential $6 in profit. The worst that could happen is that you own the shares with a breakeven point at $274. This is a 17% buffer from current price.Compare this with risking $334 today per share without any room for error and hoping for a rally to profit. The upside scenario has about $40 to $50 worth of profits if BA stock is to repeat its see-saw price action inside this weekly consolidation zone.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. Join his live chat room for free here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks That Are Screaming Buys Right Now * 7 Industrial Stocks to Buy for a Strong New Year * 7 Investing Resolutions to Follow in 2020 The post 3 Dow Jones Stocks That Are Ready to Pop appeared first on InvestorPlace.
- InvestorPlace
A 2019 Review of Dow Jones Stocks (And What 2020 May Bring)
Even if you weren't paying attention, you couldn't have missed what an unpredictable year 2019 has been for markets both in the U.S. and globally. Our economy represents about 20% of total global output. Economic growth in modern economies depend on several factors, including an efficient financial sector which encompasses well-functioning capital markets. Most economists and researchers would easily concur that U.S. equity markets are an important engine of innovation, technological advancement and economic growth.Source: Venturelli Luca / Shutterstock.com Recent research led by James Brown of Iowa State University highlights that "the high-tech sector accounts for the majority of corporate innovation in modern economies. [There is] strong positive connection between a country's equity market development and the size of its high-tech sector."Therefore, as we start a new decade, I'd like to take a closer look at how the Dow Jones Industrial Average (DJIA), one of the most commonly followed equity indices worldwide, has fared over the past year and discuss several themes I'll be watching in 2020.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Dow Jones Industrial Average in 2019The U.S. has the world's largest economy by nominal GDP. However, a year ago, as we ended 2018, many people were wondering if broader stock markets would have a rather difficult 2019. It would not be an exaggeration to say that there was a lot of nervousness -- or even fear -- in the air. * 9 High-Risk Stocks to Buy for Massive Rewards Investors were rightfully concerned about U.S.-China trade wars, a global slowdown especially in China and emerging markets, interest rates, oil and gold prices. Eventually, the dust settles in the equity markets and strong stocks shine. And that is what has happened in 2019, too.Not many would possibly have imagined that the DJIA would be delivering a gain of more than 22% during the year. This return does not include the regular dividends paid by all 30 stocks in the index. In fact, many of them are Dividend Aristocrats, or companies that have consistently increased dividends at least once a year for the last 25 years.Thus in hindsight, a combination of growth and dividend income would have made the DJIA an ideal portfolio choice.As we start the new decade, we note that low interest rates, a historically strong domestic labor market and easing of U.S.-China trade war fears have helped send markets to all-time highs.The final quarter of the year was especially strong for many stocks. Individual days when we had some selling pressure in the broader market were quickly followed rather strongly up days.While past performance may not exactly repeat in the months ahead, the track records of the index highlights its growth potential.Now let us see how each stock in the index has done over the past 52 weeks. Dow Jones StocksThere are 30 large-cap stocks in the Dow Jones Industrial Average. Most are household names. Here is how their stock prices have changed in 2019 as well as their current dividend yields.1\. Apple (NASDAQ:AAPL) - Up about 86% in 2019, current dividend yield 1.1%.2\. American Express (NYSE:AXP) - Up about 30%, current dividend yield 1.4%.3\. Boeing (NYSE:BA) - Up about 1%, current dividend yield 2.5%.4\. Caterpillar (NYSE:CAT) - Up about 16%, current dividend yield 2.8%.5\. Chevron (NYSE:CVX) - Up about 11%, current dividend yield 3.9%.6\. Cisco Systems (NASDAQ:CSCO) - Up about 11%, current dividend yield 2.9%.7\. Coca-Cola (NYSE:KO) - Up about 17%, current dividend yield 2.9%.8\. Dow (NYSE:DOW) - (DOW stock is a spinoff from DowDuPont. It started trading in March 2019 at an opening price of $52.75. The return is since that date.) Up about 4%, current dividend yield 5.1%.9\. Exxon (NYSE:XOM) - Up about 2%, current dividend yield 4.9%.10\. Goldman Sachs (NYSE:GS) - Up about 38%, current dividend yield 2.2%.11\. Home Depot (NYSE:HD) - Up about 27%, current dividend yield 2.5%.12\. Intel (NASDAQ:INTC) - Up about 28%, current dividend yield 2.1%.13\. IBM (NYSE:IBM) - Up about 18%, current dividend yield 4.9%.14\. JPMorgan Chase (NYSE:JPM) - Up about 43%, current dividend yield 2.6%.15\. Johnson & Johnson (NYSE:JNJ) - Up about 13%, current dividend yield 2.7%.16\. 3M (NYSE:MMM) - Down about 8%, current dividend yield 3.2%.17\. McDonald's (NYSE:MCD) - Up about 11%, current dividend yield 2.5%.18\. Merck (NYSE:MRK) - Up about 19%, current dividend yield 2.7%.19\. Microsoft (NASDAQ:MSFT) - Up about 55%, current dividend yield 1.3%.20\. Nike (NYSE:NKE) - Up about 37%, current dividend yield 0.9%.21\. Pfizer (NYSE:PFE) - Down about 10%, current dividend yield 3.9%.22\. Procter & Gamble (NYSE:PG) - Up about 36%, current dividend yield 2.4%.23\. Travelers Companies (NYSE:TRV) - Up about 14%, current dividend yield 2.4%.24\. UnitedHealth (NYSE:UNH) - Up about 18%, current dividend yield 1.5%.25\. United Technologies (NYSE:UTX) - Up about 41%, current dividend yield 1.9%.26\. Verizon (NYSE:VZ) - Up about 9%, current dividend yield 4.1%.27\. Visa (NYSE:V) - Up about 42%, current dividend yield 0.6%.28\. Walgreens Boots Alliance (NASDAQ:WBA) - Down about 14%, current dividend yield 3.1%.29\. Walmart (NYSE:WMT) - Up about 28%, current dividend yield 1.8%.30\. Walt Disney (NYSE:DIS) - Up about 32%, current dividend yield 1.2%.In short, of these 30 companies, 27 have been good investments, offering a wide range of returns. The three exceptions are MMM, PFE and WBA stocks.However, shareholders in all three of those companies also receive dividends. And that passive income would have made the loss in stock price less painful, especially if those dividends were reinvested. Themes I'm Watching in 2020This year, I expect risk appetite to stay strong, especially amid further hopes of progress on a trade war truce between the U.S. and China. However, if trade frictions resurface, then they could likely weigh on growth and rattle equity markets.The Federal Reserve as well as most central banks globally are likely to remain supportive and maintain the current era of low interest rates -- a factor that would bode well for equity markets. I would not fight the Fed.Consumer spending is likely to stay healthy at least in the early part of the year. However, it is quite impossible to predict when investor sentiment may turn sour.High-quality tech stocks will likely to provide the tailwind for broader markets this year, too. Yet many may not be able to repeat the exceptional performance of 2019. Investors should remember that tech stocks tend to be highly volatile, especially on a shorter-term trading basis.2020 may prove to be another solid year for mergers and acquisitions as several mid-cap companies as well as start-ups may be subject to interest by large caps and private equity firms that have plenty of cash to spare. Similarly the IPO market is likely to be quite active.Needless to say, this is the year of the U.S. presidential election. Therefore broader markets are likely to get choppy as election day draws closer in November. Discourses around regulatory backlash against Big Tech as well as Big Pharma will likely affect the prices of many stock in these industries. On another note, presidential cycles in general mean strong advertising revenue for advertisers.Finally, many investors will likely be paying attention to companies that may benefit from sustainable investing themes, not only this year but throughout the decade. The Bottom LineWe have finished 2019 with the biggest market gains since 2013. Broader indices amd many stocks have recovered from the correction we saw in the final quarter of 2018 and reached new highs.Does being a component of the Dow Jones Industrial Average make a stock a good make a good investment in 2020?The answer would depend on several factors, starting with your investing goals and time horizon. Were I to look for quality "blue chip" stocks with reliable dividends, it'd certainly be the first index I'd start analyzing.If and when quality goes on sale some time, as they usually do at some point in most years, I hope you will be ready to do due diligence on those stocks that may be suffering temporary setbacks. Buying the dips may help increase your long-term portfolio returns.Now, it just remains for me to wish you a happy and prosperous 2020!As of this writing, the author has covered calls on CSCO, KO, MRK, PFE (all Dec 10 expiry). More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy to Kick Off the New Year * 7 Buyout Targets to Watch For 2020 * 9 Boring Stocks to Buy You Should Never Let Go Of The post A 2019 Review of Dow Jones Stocks (And What 2020 May Bring) appeared first on InvestorPlace.
