The Essential Components (The Best Dow Jones stocks to buy today)
You need to identify the best Dow Jones stocks to buy today. Recall that the NYSE and Nasdaq are trading venues for thousands of stocks. But in order to make enormous profits, this is the essential component available right now.
The CAN-SLIM system provides precise instructions on what to search for. Invest in companies that have shown at least 25% annual and quarterly earnings growth recently. Seek out businesses offering innovative, disruptive goods and services. The best Dow Jones stocks to buy today Also take into account unprofitable businesses that are growing their income tremendously—often recent initial public offerings (IPOs).
There is proof that CAN SLIM consistently outperforms the S&P 500. The secret to long-term great returns is to surpass this industry benchmark.
Aim for equities with significant institutional support, concentrate on the best Dow Jones stocks to buy today in elite industry groupings, and monitor the supply and demand for the stock itself.
It’s time to use stock charts to calculate a decent entry opportunity when you have identified a business that meets your requirements. When a stock hits a buy point, you should wait for it to develop a base before making a purchase, preferably in large volume. When a stock breaks above the first high on the left side of the base, it often achieves a proper purchase point. For additional details about bases and how to use charts to increase your stock market winnings, see below: the best Dow Jones stocks to buy today.
Purchasing stocks is simple, but selecting the best stock without a tried-and-true method is rather challenging. What are the best Dow Jones stocks to buy today or add to your watchlist?
Prominent contenders include Walmart (WMT), Weatherford International (WFRD), HealthEquity (HQY), Microsoft (MSFT), and Adobe (ADBE).
Despite concerns about inflation and the Federal Reserve’s relentless rate-tightening, the market surprised observers by putting up a good showing so far in 2023, making it the best Dow Jones stock to buy today. even though indices have recently given up gains due to negative activity. Markets are still negatively affected by Russia’s invasion of Ukraine, and the Israel-Hamas conflict only makes matters worse. Rising Treasury yields are a significant worry. The best Dow Jones stocks to buy today
Remember the Market when Purchasing stocks
Market is an important component in the CAN SLIM formula. Even the finest equities tend to move in tandem with the market. Invest in the best Dow Jones stocks to buy today during a definite increase in the stock market, and when a downturn occurs, switch to cash.
Although a stock market surge that began in 2022 quickly imploded, it has produced astounding returns thus far in 2019. However, the bears are retaliating, pushing the S&P 500 and the Nasdaq below the crucial 50-day moving average. The best Dow Jones stock to buy today.
The stock market is currently experiencing a correction. Investors should now concentrate on raising capital rather than purchasing any equities at all. Sell your worst-performing stocks first to start. The best Dow Jones stocks to buy today
Additionally, investors ought to be working hard to assemble a strong watchlist of outstanding stocks that have the potential to lead the market during the next upswing. Some of the best Dow Jones stocks to buy today or monitor right now are listed below. There is also much hunting in the IBD 50.
Maintaining awareness of sell indications is essential. Any stock that deviates from your purchase price by 7% or 8% ought to be sold. Watch out for sudden drops below the 10-week or 50-day moving averages as well. The best Dow Jones stocks to buy today
Recall that there’s still a big chance of a headline. The war between Russia and Ukraine is a wild card that has the potential to rock the market, and the current problems in Israel add even more unpredictability to the mix. Inflation is still a major concern. The best Dow Jones stocks to buy today
A lot may happen in the stock market very rapidly. Here’s the market trend page, so be sure not to miss anything. The best Dow Jones stocks to buy today
Benefits of the Best Dow Jones stocks to buy today
Walmart Stock
The optimal buy point for Walmart stock, the best Dow Jones stock to buy today that has established a cup base, is 165.85. Here, the 5% buy zone extends to 174.14.
The 10-week line is being tested for support by WMT stock. It might soon take the shape of a handle, which would marginally reduce the official buy point.
Lately, the relative strength line has been rising quickly and reaching all-time highs.
Walmart’s stock has increased by more than 12% since the year began. the best Dow Jones stocks to buy today.
When it comes to the price performance of stocks over the last 12 months, it is among the top 10%. WMT has demonstrated outstanding overall performance, earning an IBD Composite Rating of 87 out of 99. Particularly, earnings are strong, achieving an EPS rating of 83 out of 99. The best Dow Jones stocks to Buy today
For the second quarter of 2024, Walmart’s earnings growth dropped to 4% following two quarters of double-digit gains that were growing. For the last five quarters, revenue growth has been in the mid- to upper-single digits. Nevertheless, the outcomes were better than anticipated, with 3.4% fewer earnings on 4.8% higher sales. The best Dow Jones stocks to buy today
Walmart’s online sales in the US increased by 24% during the quarter. Comparable sales without fuel increased 6.3%, exceeding the 4.3% growth predicted by Wall Street. Sam’s Club saw a 5.5% increase in same-store sales, while comparable traffic at Walmart locations in the US increased by 6.4%. the best Dow Jones stocks to buy today.
Walmart increased its prediction for full-year adjusted earnings, estimating $6.36–$6.46 per share on 4%–4.5% net sales growth.
The outlook was in line with revenue projections of $637.93 billion and ahead of analyst estimates of $6.30 per share. Prior to this, the business projected EPS of $6.10–$6.20 on a 3.5% increase in sales, making it the best Dow Jones stock to buy today. Wall Street experts believe that the company could profit from its Walmart+ initiative. The monthly cost of Walmart+ is $12.95, or $98 annually. Benefits from the program can be utilized at more than 4,700 establishments in various ways. With 2,700 retailers equipped to offer same-day delivery, the service will provide free delivery on items at in-store rates. The best Dow Jones stocks to buy today.
Weatherford Stock
Weatherford stock has a handle base and has developed a cup shape—the best Dow Jones stock to buy today. This time, 97.88 is the optimum buy point. The high of 96.47 on October 25 would also be an early entry point, but given the state of the market, it is risky to buy today.
Lately, the relative strength line has advanced remarkably. The stock is also trading above both of its main moving averages, which shows its strength as one of the best Dow Jones stocks to buy today.
In the oil and natural gas sector, Weatherford International offers tools and services for well building, completion, drilling, and evaluation. According to Weatherford, it operates in more than 70 nations and is the best Dow Jones stock to buy today.
The company was founded in Ireland, and its main headquarters are located in Houston. In July 2019, the company filed for Chapter 11 bankruptcy protection; five months later, it was able to come out of bankruptcy. In June 2021, the best Dow Jones stocks to buy today
The company reported Q3 revenue of $1.31 billion, up 17% from Wall Street estimates, last week. EPS shot up to $1.66 per share, more than 315% higher. The company increased its forecast for 2023 as well, predicting that revenues will rise more in the upcoming fourth quarter. The best Dow Jones stocks to buy today
Additionally, Weatherford projects that adjusted EBITDA margins—that is, earnings before interest, taxes, depreciation, and amortization—will increase by more than 400 basis points in the course of the year and generate adjusted free cash flow of more than $450 million. The best Dow Jones stocks to buy today
It had previously been estimated that adjusted free cash flow would surpass $400 million in 2023 and that EBITDA margin would increase by more than 350 basis points annually which qualifies in the best Dow Jones stocks to buy today.
Luke Lemoine, an analyst for Piper Sandler, raised his price target for WFRD from 116 to 135 recently. He kept the shares rated overweight as well as in the best Dow Jones stocks to buy today.
He believes that Weatherford will continue to increase its profitability as it approaches mid-20% EBITDA margins.
Adobe Stock
Adobe stock created a level foundation with a perfect purchase price of 570.24—the best Dow Jones stocks to buy today After reversing below the entry and the 50-day moving average, it is still something to keep an eye on for the time being.
The relative strength line is particularly impressive; although it has pulled off highs, it has been heading higher overall recently. the best Dow Jones stocks to buy today.
Adobe, which has long been recognized for its publishing and design products, is now a significant force in cloud computing and data analytics.
Furthermore, the California company benefits from artificial intelligence, which is poised to become one of the most popular investment themes of 2023. After introducing numerous new AI efforts, it is reaping benefits.
It just revealed over a hundred improvements and new generative AI features for its creative software. The company unveiled numerous AI features for its Creative Cloud suite of apps and added three new picture generators to its Firefly product line. The best Dow Jones stocks to buy today
The array of features mesmerized Wall Street analysts, who in turn rewarded the company with increases in price targets. The disclosures, according to Morgan Stanley analyst Keith Weiss, had a “wow factor” because of the depth and caliber of capabilities displayed in the best Dow Jones stocks to buy today.the best Dow Jones stocks to buy today.
The IBD Composite Rating for ADBE stock is almost perfect at 98, indicating excellent overall performance.
In terms of price performance over the last 12 months, it is among the top 3% of stocks. It has increased by about 70% just in 2023 thus far.
The stock has an exceptional earnings performance as well, with an EPS Rating of 97 out of 99. Over the last four quarters, profits have increased significantly. the best Dow Jones stocks to buy today. The sales growth over the last five quarters has varied between 9% and 14%.
Thanks to its impressive success, Adobe has been listed on three distinguished IBD lists: Tech Leaders, Big Cap 20, and The IBD 50. Recently, institutional investors have been adding to their stock holdings. As evidenced by its In contrast to its peers, it is also exhibiting leadership in the best Dow Jones stocks to buy today.
Microsoft Stock
According to MarketSmith research, Microsoft stock has formed a consolidation with a buy point of 366.78. The best Dow Jones stocks to buy today The peak on October 25 may act as an early entry.
After retreating from recent highs, relative strength is rising once more. In terms of price performance throughout the past 12 months, Microsoft stock is among the top 7% of issues.
The IBD Composite Rating of 99 is a great reflection of its overall remarkable performance over the last three quarters, the company has experienced EPS growth at an average of 19%. Furthermore, over the last three years, earnings have grown by an average of 16%—an outstanding growth rate for a company of this size.
Big Money has been steadily buying MSFT shares lately, with a C accumulation/distribution rating. The Redmond, Washington-based company stated earlier this month that its earnings per share for the three months ended September 30 had increased 27% to $2.99 while revenue increased 13% to $56.5 billion.
In the September quarter, Microsoft Cloud sales increased by 24% year over year to $31.8 billion. After the findings, Microsoft CEO Satya Nadella bragged about the company’s artificial intelligence ambitions.
“We are rapidly infusing AI across every layer of the tech stack and for every role and business process to drive productivity gains for our customers,” Nadella stated in a press statement. “With copilots, we are making the age of AI real for people and businesses everywhere.”
Microsoft debuted its AI-powered Edge web browser and new Bing search engine earlier this year. Microsoft believes that Bing’s use of OpenAI-based technologies will enable it to challenge Google’s hegemony in the online search business. Analysts raised their price targets for Microsoft stock in a hurry following the presentation. – the best Dow Jones stocks to buy today.
By incorporating artificial intelligence capabilities into its well-liked Office productivity programs, the company maintained its momentum. It follows Microsoft’s announcement of an alleged $10 billion investment in the artificial intelligence firm OpenAI.
The massive software company is supporting OpenAI with its Azure cloud computing infrastructure. Additionally, it is incorporating OpenAI models into its commercial and consumer software offerings.
HealthyEquity Stock
A cup-with-handle base buy point of 76.62 is being targeted by HealthyEquity stock. The best Dow Jones stocks to buy today Since this is a first-stage pattern, significant benefits are more likely to be realized.
There has been a slight pause in the relative strength line following a significant upward shift from early September to early October.
It has been pushed back down to just below the 50-day line and below its exponential moving average of 21 days. However, it has also added some weight to the handle.
Its IBD Composite Rating of 97 reflects its overall good performance. Its EPS rating of 90 out of 99 indicates robust earnings in the best Dow Jones stocks to buy today.
With regard to price performance over the last 12 months, HQY stock is ranked in the top 7% of issues. As of now, in 2023, it’s up almost 19%.
By the end of 2022, the Utah-based corporation had 20% of HSA assets. HealthEquity managed 8.2 million health savings accounts with $23.2 billion in assets as of the end of its fiscal second quarter in July.
In addition, the top health savings account provider observes that, despite the Federal Reserve’s higher-for-longer interest rate policy, account balances are increasing more quickly for its clients.
HSA assets in investment accounts increased 23% to $9.2 billion in Q2, while overall assets increased 13% from the previous year as more clients took advantage of better interest rates and a rallying stock market.
During the company’s Sept. 5 earnings call, HealthEquity CEO Jon Kessler stated, “11% more of our HSA customers become investors year over year, increasing investment assets, benefiting in the best Dow Jones stocks to buy today.
“We continue to see more members choose enhanced rates for their HSA cash, leading to higher and longer custodial yields and, we believe, less cyclicality in the future,” Kessler stated. On assets that aim for higher returns than cash, HealthEquity receives a higher rate of return.
In addition, Kessler predicted that the HSA market will expand by “10% annually for years to come,” and HealthEquity planned to surpass that growth rate.
As a result of Guggenheim’s Oct. 13 designation of HealthEquity as a “Best Idea,” its price target for HQY stock was increased from 94 to 110. According to the company, Wall Street projections of HealthEquity’s future “underappreciate” how rising interest rates will increase the company’s assets under management.
Additionally, on September 21, Baird raised its price objective for HQY from 79 to 87, upgrading it to outperform from neutral. In spite of the fact that rising interest rates should be beneficial in the upcoming years, the company stated that it views HealthEquity as a “multi-decade compounder,” maintaining its position in a market that is expanding.
Also Read the “The Top 10 Cryptocurrencies for Investment.”
A cup-with-handle base buy point of 76.62 is being targeted by HealthyEquity stock. The best Dow Jones stocks to buy today Since this is a first-stage pattern, significant benefits are more likely to be realized.
There has been a slight pause in the relative strength line following a significant upward shift from early September to early October.
It has been pushed back down to just below the 50-day line and below its exponential moving average of 21 days. However, it has also added some weight to the handle.
Its IBD Composite Rating of 97 reflects its overall good performance. Its EPS rating of 90 out of 99 indicates robust earnings in the best Dow Jones stocks to buy today.
With regard to price performance over the last 12 months, HQY stock is ranked in the top 7% of issues. As of now, in 2023, it’s up almost 19%.
By the end of 2022, the Utah-based corporation had 20% of HSA assets. HealthEquity managed 8.2 million health savings accounts with $23.2 billion in assets as of the end of its fiscal second quarter in July.
In addition, the top health savings account provider observes that, despite the Federal Reserve’s higher-for-longer interest rate policy, account balances are increasing more quickly for its clients.
HSA assets in investment accounts increased 23% to $9.2 billion in Q2, while overall assets increased 13% from the previous year as more clients took advantage of better interest rates and a rallying stock market.
During the company’s Sept. 5 earnings call, HealthEquity CEO Jon Kessler stated, “11% more of our HSA customers become investors year over year, increasing investment assets, benefiting in the best Dow Jones stocks to buy today.
“We continue to see more members choose enhanced rates for their HSA cash, leading to higher and longer custodial yields and, we believe, less cyclicality in the future,” Kessler stated. On assets that aim for higher returns than cash, HealthEquity receives a higher rate of return.
In addition, Kessler predicted that the HSA market will expand by “10% annually for years to come,” and HealthEquity planned to surpass that growth rate.
As a result of Guggenheim’s Oct. 13 designation of HealthEquity as a “Best Idea,” its price target for HQY stock was increased from 94 to 110. According to the company, Wall Street projections of HealthEquity’s future “underappreciate” how rising interest rates will increase the company’s assets under management.
Additionally, on September 21, Baird raised its price objective for HQY from 79 to 87, upgrading it to outperform from neutral. In spite of the fact that rising interest rates should be beneficial in the upcoming years, the company stated that it views HealthEquity as a “multi-decade compounder,” maintaining its position in a market that is expanding.
Also Read the “The Top 10 Cryptocurrencies for Investment“