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Dow ETF Hits New Highs on Vaccine Optimism: 5 Best Stocks
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Vaccine optimism has strengthened the post-election rally, pushing the Dow Jones to new highs.
Moderna (MRNA - Free Report) became the second U.S. company after Pfizer (PFE - Free Report) to report promising results from its COVID-19 vaccine late-stage trials. The data showed that Moderna’s vaccine candidate was 94.5% effective against coronavirus while Pfizer vaccine was more than 90% effective. The dual news has bolstered investors’ confidence in a swift economic rebound from a pandemic-led recession (read: Biggest ETF Winners from Coronavirus Vaccine News).
Notably, the Dow Jones hit all-time highs since February, marking its fastest bear market recovery in 30 years. This is especially true as the benchmark took 1,483 trading days to carve out a new all-time high after hitting a bear market, per Dow Jones Market Data. The Dow Jones is up 60.5% since its Mar 23 bear market.
Given this, SPDR Dow Jones Industrial Average ETF (DIA - Free Report) tracking the Dow Jones Index has been in the spotlight. The ETF hit new highs of $300.08 in the latest trading session and is up 2.8% in a week. Let’s take a closer look at the fundamentals of DIA and its performance.
DIA in Focus
This is one of the largest and most popular ETFs in the large-cap space with AUM of $24.8 billion and average daily volume of 3.4 million shares. Holding 30 blue chip stocks, the fund is widely spread across components with each holding less than 8% share. Information technology (22.3%), healthcare (18.4%), industrials (16.3%), consumer discretionary (13.8%) and financials (13%) are the top five sectors. DIA charges 16 basis points (bps) in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Though most stocks in the fund’s portfolio were in the green over the past week, we have highlighted the five best performing stocks in the ETF:
The Boeing Company (BA - Free Report) : The stock has gained 12.8% over the past week. It saw no earnings estimate revision for this year over the past week and has an expected earnings decline rate of 165.7%. Boeing currently has a Zacks Rank #3 (Hold) and a VGM Score of F. The stock takes the 10th spot in DIA portfolio with 4.2% exposure. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chevron Corporation (CVX - Free Report) : This stock makes up for 1.8% allocation and gained 12.1% over the past week. The stock witnessed positive earnings estimate revision of 7 cents for this year over the past seven days. It is expected to record year-over-year earnings decline of 102.2%. Chevron has a Zacks Rank #5 (Strong Sell) and a VGM Score of B (read: Energy ETFs in Focus Post Exxon, Chevron Earnings).
Cisco Systems Inc. (CSCO - Free Report) : This stock takes 0.9% allocation in the fund’s basket and has gained 11.3% in the past week. The stock witnessed no earnings estimate activity for fiscal year (ending July 2021) over the past week. It is expected to see year-over-year earnings decline of 3.1%. Cisco carries a Zacks Rank #3 and has a VGM Score of C.
Walgreens Boots Alliance Inc. (WBA - Free Report) : This stock takes 0.9% allocation in the fund’s basket and climbed 10.8% in a week. The stock witnessed no earnings estimate activity for fiscal year (ending August 2021) over the past week and has an estimated year-over-year earnings growth of 4%. It has a Zacks Rank #3 and a VGM Score of B.
3M Company (MMM - Free Report) : The stock gained 6.3% over the past week and makes up for 3.8% share in DIA. It has a Zacks Rank #2 (Buy) and VGM Score of C. The company saw no earnings estimate revision for this year over the past week. It is expected to witness earnings decline of 5.8% (read: Can Industrial ETFs Gain Despite Mixed Q3 Earnings?).
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Dow ETF Hits New Highs on Vaccine Optimism: 5 Best Stocks
Vaccine optimism has strengthened the post-election rally, pushing the Dow Jones to new highs.
Moderna (MRNA - Free Report) became the second U.S. company after Pfizer (PFE - Free Report) to report promising results from its COVID-19 vaccine late-stage trials. The data showed that Moderna’s vaccine candidate was 94.5% effective against coronavirus while Pfizer vaccine was more than 90% effective. The dual news has bolstered investors’ confidence in a swift economic rebound from a pandemic-led recession (read: Biggest ETF Winners from Coronavirus Vaccine News).
Notably, the Dow Jones hit all-time highs since February, marking its fastest bear market recovery in 30 years. This is especially true as the benchmark took 1,483 trading days to carve out a new all-time high after hitting a bear market, per Dow Jones Market Data. The Dow Jones is up 60.5% since its Mar 23 bear market.
Given this, SPDR Dow Jones Industrial Average ETF (DIA - Free Report) tracking the Dow Jones Index has been in the spotlight. The ETF hit new highs of $300.08 in the latest trading session and is up 2.8% in a week. Let’s take a closer look at the fundamentals of DIA and its performance.
DIA in Focus
This is one of the largest and most popular ETFs in the large-cap space with AUM of $24.8 billion and average daily volume of 3.4 million shares. Holding 30 blue chip stocks, the fund is widely spread across components with each holding less than 8% share. Information technology (22.3%), healthcare (18.4%), industrials (16.3%), consumer discretionary (13.8%) and financials (13%) are the top five sectors. DIA charges 16 basis points (bps) in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Though most stocks in the fund’s portfolio were in the green over the past week, we have highlighted the five best performing stocks in the ETF:
The Boeing Company (BA - Free Report) : The stock has gained 12.8% over the past week. It saw no earnings estimate revision for this year over the past week and has an expected earnings decline rate of 165.7%. Boeing currently has a Zacks Rank #3 (Hold) and a VGM Score of F. The stock takes the 10th spot in DIA portfolio with 4.2% exposure. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chevron Corporation (CVX - Free Report) : This stock makes up for 1.8% allocation and gained 12.1% over the past week. The stock witnessed positive earnings estimate revision of 7 cents for this year over the past seven days. It is expected to record year-over-year earnings decline of 102.2%. Chevron has a Zacks Rank #5 (Strong Sell) and a VGM Score of B (read: Energy ETFs in Focus Post Exxon, Chevron Earnings).
Cisco Systems Inc. (CSCO - Free Report) : This stock takes 0.9% allocation in the fund’s basket and has gained 11.3% in the past week. The stock witnessed no earnings estimate activity for fiscal year (ending July 2021) over the past week. It is expected to see year-over-year earnings decline of 3.1%. Cisco carries a Zacks Rank #3 and has a VGM Score of C.
Walgreens Boots Alliance Inc. (WBA - Free Report) : This stock takes 0.9% allocation in the fund’s basket and climbed 10.8% in a week. The stock witnessed no earnings estimate activity for fiscal year (ending August 2021) over the past week and has an estimated year-over-year earnings growth of 4%. It has a Zacks Rank #3 and a VGM Score of B.
3M Company (MMM - Free Report) : The stock gained 6.3% over the past week and makes up for 3.8% share in DIA. It has a Zacks Rank #2 (Buy) and VGM Score of C. The company saw no earnings estimate revision for this year over the past week. It is expected to witness earnings decline of 5.8% (read: Can Industrial ETFs Gain Despite Mixed Q3 Earnings?).
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Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>