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Dow Tops 28,000: 7 Hot Stocks Behind the Rally

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In the latest series of record highs, the Dow Jones Industrial Average broke the new milestone of 28,000 for the first time in history. This marks the 11th record close in 2019 and the first 1,000-point milestone of the index since Jul 11.

The dual tailwinds of renewed trade optimism and stronger-than-expected corporate earnings drove the rally. The bullishness was further fueled by rate cuts by the Federal Reserve that made borrowings cheaper, providing a boost to both investment in new projects and repayment of a higher-rate debt. The Fed slashed interest rates once again by 25 basis points last month, representing the third rate cut of the year.

A spate of better-than-expected data added to the strength in the economy. This is especially true as October retail sales rebounded from a sluggish September and American consumers remain willing to spend, which is good news for domestic economic growth.

Given this, the Dow Jones has gained 20% in the year-to-date timeframe. We have presented seven stocks that have easily led the way higher, crushing the benchmark’s return. These stocks carry a Zacks Rank #1 (Strong Buy), 2 (Buy), 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Apple Inc. (AAPL - Free Report)

The stock has skyrocketed about 68.5% this year. It has seen positive earnings estimate revisions of 17 cents in the past month for the fiscal year (ending September 2020) and has an expected growth rate of 10.77%. Apple currently has a Zacks Rank #3 and VGM Score of B. The stock belongs to an unfavorable Zacks industry (placed at the bottom 13% of 250+ industries).

Facebook

The stock has surged nearly 49% so far this year. It carries a Zacks Rank #3 and has a VGM Score of A. Facebook has seen positive earnings estimate revision of 3 cents for this year in a month, but its earnings are expected to decline 16.12%. The stock belongs to a favorable Zacks industry (placed at the top 35% of 250+ industries).

Microsoft Corporation (MSFT - Free Report)

This stock has gained 47.6% and witnessed solid earnings estimate revision of 14 cents for fiscal year (ending Jun 2020) over the past month. Its earnings are expected to grow 12.63% in the current year. Microsoft carries a Zacks Rank #2 and has a VGM Score of C. It belongs to a favorable Zacks industry (placed at the top 16%).

United Technologies Corporation

The stock has risen more than 40% in the year-to-date timeframe. It has seen robust earnings estimate revision of 12 cents for this year in a month and has an expected earnings growth of 6.83%. The company has a Zacks Rank #3 and VGM Score of B. However, it belongs to a bottom-ranked Zacks industry (bottom 42%).

Home Depot (HD - Free Report)

This stock is up more than 38% in the same time frame. The stock has seen no earnings estimate revision activity for the fiscal year (ending January 2020) over the past month and has estimated year-over-year earnings growth of 2.33%. HD belongs to a top-ranked Zacks industry (top 13%). It has a Zacks Rank #2 and VGM Score of B.

Visa Inc. (V - Free Report)

The stock has gained more than 36%. It has seen negative earnings estimate revision of a couple of cents in the past month for the fiscal year (ending September 2020) and has an expected growth rate of 14.34%. Visa currently has a Zacks Rank #3 and VGM Score of C. The stock belongs to a favorable Zacks industry (placed at the top 31%).

JPMorgan Chase & Co. (JPM - Free Report)

The stock has risen 32.7% in the year-to-date timeframe. It has seen positive earnings estimate revision of a couple of cents for this year in a month and has an expected earnings growth rate of 15.33%. The company has a Zacks Rank #3 and VGM Score of D. It belongs to a favorable Zacks industry (top 41%).

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