Dow Jones Industrial Average Sees Strong Summer Gains with Tech and Non-Tech Stocks Leading the Way
The Dow Jones Industrial Average has experienced a successful summer so far, with the 30-stock benchmark showing a growth of over 3% since Memorial Day. This positive trend can be attributed to the traction gained by both technology and non-technology companies. As we look ahead, the question on everyone’s mind is where will the Dow go from here?
To shed some light on this query, CNBC Pro has conducted a comprehensive analysis of the best-performing Dow stocks since May 29. The study delved into both the stock’s recent performance and its outlook as predicted by analysts. Notably, four companies stood out for their significant gains and positive reception by analysts.
Intel, one of the leading players in the semiconductor industry, has seen its stock rise by more than 13% since Memorial Day. This surge followed their second-quarter earnings report, which surpassed analyst expectations. Furthermore, Intel’s future prospects look promising as the company issued better-than-expected guidance. Though it may not enjoy a high level of popularity among analysts, with only 18% giving it a buy rating, the average analyst price target suggests a 12% upside for the stock.
Boeing, a prominent aerospace company, also made the list with a 13% increase in its shares since Memorial Day. This growth can be attributed to its impressive second-quarter results, which exceeded analysts’ projections. Additionally, Boeing reported delivering over 136 planes during that period, a significant rise from the previous year. More than half of the analysts polled by FactSet have given Boeing a buy rating, with their average price targets indicating a potential 13% upside for the stock in the next 12 months.
Despite facing challenges posed by a cautious consumer and persistent inflation, Home Depot, a leading player in the consumer staples sector, has still managed to gain about 11% in its stock value since Memorial Day. The company’s strong performance can be attributed to its resilience amid adverse circumstances. Approximately 49% of analysts surveyed by FactSet have rated the building supplies stock as a buy, and their average price targets predict a 7.3% upside for the stock.
Caterpillar, an American multinational company specializing in construction machinery, has emerged as the top performer on the list, enjoying a nearly 28% surge since the Memorial Day holiday. This remarkable growth can be attributed to the company’s positive reception among analysts, with approximately 41% maintaining a buy rating. The average price target for Caterpillar implies a 6.6% upside, highlighting its promising future.
Overall, the Dow Jones Industrial Average has shown strong gains this summer, thanks to the impressive performance of companies like Intel, Boeing, Home Depot, and Caterpillar. While there may be varied opinions among analysts, these stocks have demonstrated their potential for growth and have received positive attention from the investment community. Investors will be closely watching the market to see how these stocks continue to evolve and contribute to the index’s overall performance.
