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There really isn’t a better scenario to cap off an almost 8 year bull market then Dow 20,000. And what a present it would be for the bulls to get it done by Christmas. Wall Street loves to have positive events before the holidays, nothing would make them happier to be the topic of conversation at the dinner table. It won’t be surprising to see this milestone before the Santa arrives.
The stocks leading the charge higher will likely be big winners in 2017. The recent breakout has been due to speculation in what stocks will benefit from a Trump Presidency for the next four years. Investors should expect follow through into next year and another bullish year due to pro-business policies.
Below I go over five top ranked stocks that are leading the Dow higher. These stocks are the leaders that should continue to fuel to Dow to 20,000 and beyond.
Goldman Sachs (GS - Free Report) is a Zacks Rank #2 (Buy) that is a popular global investment banking and securities firm, providing a full range of investing, advisory and financing services worldwide to a substantial and diversified client base. Their customers includes corporations, financial institutions, governments, and high net worth individuals.
Goldman employs almost 35,000, was founded in 1869 and is based in New York. The stock is up almost 35% for the year and has an 8.38% weight in the Dow, by far the biggest influencer of the recent move higher.
The company has a market cap of $96 billion with a forward PE of 16. The stock sports Zacks Style Scores of “D” in both Growth and Value, but a “B” in Momentum. Goldman pays a dividend of 1.08% and has expected EPS growth of 10%.
Over the last two months, estimates for the current year have been revised 7% higher, from $14.33 to $15.38. Higher interest rates and the potential for a Dodd-Frank repeal have investors giddy for the stock.
Untied Health (UNH - Free Report) is a Zacks Rank #2 (Buy) that offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, individuals, and military service members; and health care coverage, and health and well-being services to individuals aged 50 and older addressing their needs for preventive and acute health care services.
United employs 200,000, was founded in 1974 and is based outside of Minneapolis. The stock is up over 30% for the year and has a 5.55% weighting in the Dow.
The company has a market cap of $152 billion with a forward PE of 20. The stock sports Zacks Style Scores of “A” in Growth, Value and Momentum. United pays a dividend of 1.56% and has expected EPS growth of 14%.
Over the last two months, estimates for the current year have been revised 1.26% higher, from $7.91 to $8.01. The company hasn’t missed EPS in the last five years and investors have been rewarded by seeing the stock more than triple over that time frame.
Caterpillar (CAT - Free Report) is a Zacks Rank #3 (Hold) that manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide.
Caterpillar employs over 105,000, was founded in 1986 and is based in Peoria, Illinois. The stock is up almost 40% for the year and has a 3.31% weighting in the Dow.
The company has a market cap of $56 billion with a forward PE of 30. The stock sports Zacks Style Scores of “C” in Value, but an “F” in Momentum. The company pays a dividend of 3.22% and has expected EPS growth of 4.25%.
Estimates have actually trended down over the last couple months. However, the hope is that Trump’s promise for infrastructure spending will change the direction. The company has beaten on EPS seven straight quarters and looks to beat again when they next report on January 26th.
JPMorgan Chase (JPM - Free Report) is a Zacks Rank #3 (Hold) that is a financial services firm that engages in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management and private equity.
Chase has over 234,000 employees and is based in New York, New York. The stock is up almost 30% for the year and has a 2.96% weighting in the Dow.
The company has a market cap of $305 billion with a Forward PE of 15. The stock sports Zacks Style Scores of “F” in Growth and Value, but “A” in Momentum. JPM pays a dividend of 2.25% and has expected EPS growth of 5%.
JPM reported in early October with a 13% beat. The EPS beat was the fourth straight and the sixth out of the last seventh. The momentum will look to continue with a rate hike and a repeal of or roll bacl of Dodd-Frank.
McDonalds (MCD - Free Report) is a Zacks Rank #2 (Buy) that develops, operates, franchises and services a worldwide system of restaurants that prepare, assemble, package and sell a limited menu of value-priced foods.
McDonalds employs almost 420,000, was founded in 1940 and is based in Oak Brook, Illinois. The stock is up only 3% for the year and has a 4.20% weight in the Dow.
The company has a market cap of $100 billion with a forward PE of 21. The stock sports Zacks Style Scores of “B” in both Growth and Momentum. The stock pays a dividend of 3.10% and has expected EPS growth of 10%.
Over the last two months, estimates for the current year have been revised 2.3% higher, from $5.56 to $5.69. The stock looks for its tenth straight EPS beat when it next reports earnings on January 23rd.
In summary
“Dow 20,000” hats were being manufactured back in 1999. Finally, it looks like seventeen years later they will be taken out and passed around the floor of the New York stock exchange. If we are lucky enough, maybe we will find one in our stocking this Christmas.
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5 Dow Stocks Leading the Way to 20,000
There really isn’t a better scenario to cap off an almost 8 year bull market then Dow 20,000. And what a present it would be for the bulls to get it done by Christmas. Wall Street loves to have positive events before the holidays, nothing would make them happier to be the topic of conversation at the dinner table. It won’t be surprising to see this milestone before the Santa arrives.
The stocks leading the charge higher will likely be big winners in 2017. The recent breakout has been due to speculation in what stocks will benefit from a Trump Presidency for the next four years. Investors should expect follow through into next year and another bullish year due to pro-business policies.
Below I go over five top ranked stocks that are leading the Dow higher. These stocks are the leaders that should continue to fuel to Dow to 20,000 and beyond.
Goldman Sachs (GS - Free Report) is a Zacks Rank #2 (Buy) that is a popular global investment banking and securities firm, providing a full range of investing, advisory and financing services worldwide to a substantial and diversified client base. Their customers includes corporations, financial institutions, governments, and high net worth individuals.
Goldman employs almost 35,000, was founded in 1869 and is based in New York. The stock is up almost 35% for the year and has an 8.38% weight in the Dow, by far the biggest influencer of the recent move higher.
The company has a market cap of $96 billion with a forward PE of 16. The stock sports Zacks Style Scores of “D” in both Growth and Value, but a “B” in Momentum. Goldman pays a dividend of 1.08% and has expected EPS growth of 10%.
Over the last two months, estimates for the current year have been revised 7% higher, from $14.33 to $15.38. Higher interest rates and the potential for a Dodd-Frank repeal have investors giddy for the stock.
Untied Health (UNH - Free Report) is a Zacks Rank #2 (Buy) that offers consumer-oriented health benefit plans and services for national employers, public sector employers, mid-sized employers, small businesses, individuals, and military service members; and health care coverage, and health and well-being services to individuals aged 50 and older addressing their needs for preventive and acute health care services.
United employs 200,000, was founded in 1974 and is based outside of Minneapolis. The stock is up over 30% for the year and has a 5.55% weighting in the Dow.
The company has a market cap of $152 billion with a forward PE of 20. The stock sports Zacks Style Scores of “A” in Growth, Value and Momentum. United pays a dividend of 1.56% and has expected EPS growth of 14%.
Over the last two months, estimates for the current year have been revised 1.26% higher, from $7.91 to $8.01. The company hasn’t missed EPS in the last five years and investors have been rewarded by seeing the stock more than triple over that time frame.
Caterpillar (CAT - Free Report) is a Zacks Rank #3 (Hold) that manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide.
Caterpillar employs over 105,000, was founded in 1986 and is based in Peoria, Illinois. The stock is up almost 40% for the year and has a 3.31% weighting in the Dow.
The company has a market cap of $56 billion with a forward PE of 30. The stock sports Zacks Style Scores of “C” in Value, but an “F” in Momentum. The company pays a dividend of 3.22% and has expected EPS growth of 4.25%.
Estimates have actually trended down over the last couple months. However, the hope is that Trump’s promise for infrastructure spending will change the direction. The company has beaten on EPS seven straight quarters and looks to beat again when they next report on January 26th.
JPMorgan Chase (JPM - Free Report) is a Zacks Rank #3 (Hold) that is a financial services firm that engages in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management and private equity.
Chase has over 234,000 employees and is based in New York, New York. The stock is up almost 30% for the year and has a 2.96% weighting in the Dow.
The company has a market cap of $305 billion with a Forward PE of 15. The stock sports Zacks Style Scores of “F” in Growth and Value, but “A” in Momentum. JPM pays a dividend of 2.25% and has expected EPS growth of 5%.
JPM reported in early October with a 13% beat. The EPS beat was the fourth straight and the sixth out of the last seventh. The momentum will look to continue with a rate hike and a repeal of or roll bacl of Dodd-Frank.
McDonalds (MCD - Free Report) is a Zacks Rank #2 (Buy) that develops, operates, franchises and services a worldwide system of restaurants that prepare, assemble, package and sell a limited menu of value-priced foods.
McDonalds employs almost 420,000, was founded in 1940 and is based in Oak Brook, Illinois. The stock is up only 3% for the year and has a 4.20% weight in the Dow.
The company has a market cap of $100 billion with a forward PE of 21. The stock sports Zacks Style Scores of “B” in both Growth and Momentum. The stock pays a dividend of 3.10% and has expected EPS growth of 10%.
Over the last two months, estimates for the current year have been revised 2.3% higher, from $5.56 to $5.69. The stock looks for its tenth straight EPS beat when it next reports earnings on January 23rd.
In summary
“Dow 20,000” hats were being manufactured back in 1999. Finally, it looks like seventeen years later they will be taken out and passed around the floor of the New York stock exchange. If we are lucky enough, maybe we will find one in our stocking this Christmas.
Note: Want more articles from this author? Scroll up to the top of this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
Zacks' Best Investment Ideas for Long-Term Profit
Today you can gain access to long-term trades with double and triple-digit profit potential rarely available to the public. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more. Want a peek at this private information? Click here >>