Walmart (WMT), Amazon.com (AMZN) and American Express (AXP) count among the five best Dow Jones stocks of the first half of 2024. JPMorgan Chase (JPM) and Microsoft (MSFT)also make the cut.
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Best Dow Jones Stocks Of 2024
The Dow Jones Industrial Average lagged in the first six months of 2024, up 3.8%. But several of the top Dow stocks of 2024 handily outpaced the blue-chip index's gains.
Led by Walmart stock, the best Dow Jones stocks all surged in 2024 to record highs. Three of the top five — Amazon.com, American Express and JPMorgan Chase — have formed bases. Walmart stock and Microsoft are extended, meaning shares have moved beyond buy range.
Each of the top Dow Jones stocks of 2024 so far flourishes a Composite Rating of 90 or above. The IBD Composite Rating, which ranges from 1 (worst) to 99 (best), gives an instant overview of a stock based on a combination of fundamental and technical metrics.
Walmart Stock
Shares of Walmart rocketed 28.9% in the first six months of 2024, making it the best of the best Dow Jones stocks. Walmart stock is extended from breakouts past 61.66 and 56.65 in mid-May and early February, respectively. That means shares are not in buy range.
This top retail play has a superior 97 Composite Rating. Its EPS Rating is 87. A 90 RS Rating means that Walmart stock has outperformed 90% of all stocks in IBD's database over the past year.
Walmart stock broke out in mid-May after the big-box retailer gave an optimistic full-year outlook, following a Q1 earnings beat.
Notably, Walmart said it continues to draw more frequent and new shoppers. More higher-income shoppers are turning to Walmart stores amid persistent inflation, the company said.
Inflation-weary consumers are prioritizing groceries over general merchandise, Walmart, the nation's largest grocer, also said. E-commerce sales continue to grow for this Amazon rival.
Amazon Stock
Shares of Amazon.com jumped 27.2% in the first half of 2024.
The e-commerce giant hit the IBD Leaderboard stock as it cleared a 191.70 buy point on June 26. Shares struck an all-time intraday high on June 17 and remain in buy range as of July 1.
The e-commerce giant nabs a 95 Composite Rating. Its EPS Rating is 81 and RS Rating is 92.
In April, Amazon beat first-quarter earnings estimates, driven by growth in Amazon Web Services (AWS) and advertising revenue. But revenue guidance for the current second quarter disappointed.
Amazon also brought its artificial intelligence (AI) assistant Amazon Q to its AWS enterprise customers. That could help it narrow the gap with major cloud and AI rivals Microsoft and Alphabet (GOOGL).
The e-commerce giant joined the Dow Jones Industrial Average in February, replacing Walgreens Boots Alliance (WBA).
American Express Stock
Shares of the credit card company surged 23.6% in the first half of 2024.
American Express stock shows a flat base with a 244.41 buy point, according to MarketSurge pattern recognition. Shares are 4% below the entry and under the 10-week moving average, as well.
This third-best Dow Jones stock of 2024 earns a Composite Rating of 90. Its EPS Rating is 93 and RS Rating is 90.
In April, American Express affirmed full-year guidance after first-quarter earnings beat estimates.
"We continue to attract high-spending, high credit-quality customers to the franchise," American Express Chief Executive Officer Stephen Squeri said. In Q1, new card acquisitions accelerated quarter over quarter to 3.4 million, he added.
JPMorgan Chase Stock
Shares of JP Morgan leapt 18.91% higher in the first half of 2024. IBD named JP Morgan Chase its Stock of the Day on July 1 as it tested a a 205.88 buy point from a flat base, striking an all-time intraday high.
Shares bear a Composite Rating of 93. The EPS Rating is 88 and its RS Rating is 88 as well.
Last Friday, JPMorgan said it would raise its quarterly dividend to $1.25 from $1.15. Its board authorized a new $30 billion stock buyback as well. Last Wednesday, the Federal Reserve announced the bank had passed the annual Fed stress test, showing it is well positioned to survive a possible recession.
During a May 20 investor day, JPMorgan raised its outlook for 2024 net interest income to $91 billion from a previous forecast for $89 billion in April.
Microsoft Stock
Shares of Microsoft jumped 18.86% in the first half of 2024, practically a tie with JP Morgan Chase for fourth place. Microsoft stock is above the 5% chase zone from a May breakout past 430.82.
This IBD Long-Term Leader stock holds a Composite Rating of 93. Its EPS Rating is 97 and RS Rating is 89.
Like Amazon, Microsoft beat earnings estimates for its latest quarter driven by cloud growth.
Microsoft-backed startup OpenAI's ChatGPT is one of many "generative AI" technologies that can create text, images, video and programming code on their own.
Generative AI technology is being used in marketing, advertising, drug development and more. That has made Microsoft, one of the five best Dow Jones stocks of 2024 so far, arguably the No. 1 AI stock today.
Best Dow Stocks Of Q2
Walmart stock holds a sizable Q2 gain of around 12% as well.
Other Q2 Dow stock winners include Apple (AAPL), 3M (MMM), Amgen (AMGN) and Goldman Sachs (GS). Apple stock notched the biggest advance, up more than 20% over the quarter. Shares ended the quarter just beyond the buy range of a cup-base buy point, following a June 11 breakout.
Goldman Sachs is in a six-week flat base with a 471.48 buy point. Amgen is within 4% of a 322.60 entry in a cup-with-handle base pattern. 3M is holding 10-week support in a flat base with a 106.04 buy point.
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