Thursday , 19 April 2018


5 Dow Winners For 2018

Investing in select Dow stocks looks like a smart option at this point. We have narrowed down our search to the following stocks based on a good Zacks Rank and other relevant metrics. Each of these stocks has a Zacks Rank #2 (Buy). 

The original article by Swarup Gupta has been edited for length (…) and clarity ([ ]) by munKNEE.com to provide a fast & easy read. For all the latest – and best – financial articles sign up (in the top right corner) for your free bi-weekly Market Intelligence Report newsletter (see sample here) or visit our Facebook page.

The Dow is on course to record its best yearly performance since 2013. Powering this stretch of gains have been strong earnings results and steady economic growth, factors which remain firmly in place. Meanwhile, recently enacted tax cuts are likely to boost fourth quarter earnings even higher.

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1. Caterpillar Inc. (CAT) has recently delivered strong third quarter earnings results…attributed to surprisingly strong demand for its construction equipment in North America, robust sales in China, improvement in other markets as well as disciplined cost-control efforts.

Caterpillar has expected earnings growth of 88.6% for the current year. The Zacks Consensus Estimate for the current year has improved by 0.8% over the last 30 days. Caterpillar has returned 67.9% year to date, outperforming the industry it belongs to, which has gained 65.8% over the same period.

2. Wal-Mart Stores, Inc. (WMT) also delivered stellar third quarter numbers, driven by its constant expansion efforts and splendid e-commerce performance.

Wal-Mart has expected earnings growth of 2.5% for the current year. The Zacks Consensus Estimate for the current year has improved by 1.1% over the last 60 days. Wal-Mart has returned 42.1% year to date, outperforming the industry it belongs to, which has gained 33.1% over the same period.

3. Microsoft Corporation (MSFT) has registered strong third quarter results with both earnings and revenues exceeding expectations. Its enterprise refresh cycle, new subscription model, Azure and promising new products will continue to generate sizeable cash flows.

Microsoft has expected earnings growth of 2.2% for the current year. The Zacks Consensus Estimate for the current year has improved by 4% over the last 60 days. Microsoft has returned 37.6% year to date, outperforming the industry it belongs to, which has gained 35.8% over the same period.

4. 3M Company (MMM) continues to deliver sustainable increase in earnings and free cash flow, benefiting from its long-term strategy of accelerating investment in high-growth programs.

3M has expected earnings growth of 11.3% for the current year. The Zacks Consensus Estimate for the current year has improved by 0.1% over the last 30 days. 3M has returned 31.5% year to date, outperforming the industry it belongs to, which has lost 4.6% over the same period.

5. Intel Corporation (INTC) is benefiting from robust performance of the Data Center Group, Internet-of-Things Group, Non-Volatile Memory Solutions and Programmable Solutions Group. Its leading position in PCs, strength in servers, growing position in software and IoT segments and headway in process technology are all positive indicators of its future growth.

Intel has expected earnings growth of 19.5% for the current year. The Zacks Consensus Estimate for the current year has improved by 0.1% over the last 30 days. Citizens Financial Services has returned 28.8% year to date, underperforming the industry it belongs to, which has gained 46.7% over the same period. However, over the last three months it has gained 24.4%, outperforming the industry’s gain of 19%.

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