Dow Jones Stock: Chevron leads 5 Blue Chip near buy point
Dow Jones stock Boeing airplanes (father), UnitedHealth (UNH), caterpillars (CAT), letter V (CVX) and Goldman book (GS) is the focus this week.
The Dow Jones Industrial Average is leading the current market rally, hitting a seven-month high. Although it includes only 30 stocks, the Dow Jones index reflects the broader strength of industrial, financial, healthcare and energy stocks.
All five of these Dow stocks are close to buy pointswith some capable of action.
The overall market uptrend has been making progress over the past week, with the S&P 500 regaining its 200-day moving average, holding that key level on Friday despite the heating jobs report.
Chevron stock is active IBD Rankings. Boeing stock is on the rise SwingTrader.
Dow Jones Stock: Boeing
BA stock rose 4% to 182.87 on Friday market tradingslightly expanded from 173.95 cup base buy points. Investors can use the recent short-term high as an alternative entry. For the week, Boeing shares rose 2.5%.
Boeing shares rebound on Friday after Wall Street Journal report unified airline (UAL) is close to reaching an agreement to buy “dozens” of 787 Dreamliners.
After a strong rally, Boeing stock has paused for the past few weeks, causing the 21-day moving average to close the gap.
Boeing stock began to recover in late September. That was briefly interrupted with a final reversal on October 26, when Boeing posted an unexpected third-quarter loss, with challenges knowledge in the defense segment offsets commercial airline profits.
But in early November, Boeing said they expect to deliver around 375 best-selling 737 jets by 2022, increasing to 400 to 450 next year. By 2025-2026, Boeing forecasts that it will deliver about 800 commercial aircraft, including the 737 and 787 Dreamliner. In October, Boeing said it had delivered 277 737s and 9 787s, the company said earlier in October.
Boeing says all those future jet sales will contribute to much stronger cash flow in the years to come.
Boeing’s best seller 737 Max returns to service in December 2020 after two fatal flights resulted in worldwide landings. Deliveries of the 787 resumed last quarter following production problems. Aircraft manufacturers receive most of the payments from airlines and other customers after the jets are delivered.
Boeing has suffered a collapse in commercial and business air travel during the pandemic. It also faces setbacks for key defense programs. The company is working to turn the tide as recession fears grow and supply disruptions continue.
Analysts expect Boeing to earn 32 cents per share in Q4, up from a loss of 7.69 cents per share a year ago. Wall Street is forecasting a 34% increase in revenue to $19.8 billion.
In 2023, Boeing is expected to be profitable after four years of losses.
Dow Jones Boeing shares have a Overall rating over 47. It has a Relative Strength Rating of 93, an exclusive stat Check IBD Stocks measure of stock price volatility. EPS rating is low 1.
CAT stock rose 0.2 percent to 236.13 on Friday, also up 0.2 percent for the week.
Shares are pausing around a 238 buy point still valid from a cup base from April, according to MarketSmith Analysis. Investors can use 239.95 as another buy point, either as a high for a seven-month cup basis or as a traditional threshold for a larger consolidation beginning in June 2021.
Dow Jones stock CAT has rallied 46% since bottoming in late September. The six-week run — including an 8% gain thanks to superior Q3 earnings — has been on hold since Nov. 14. , while trading in a narrow range.
The mining and construction equipment giant is headquartered in Deerfield, Ill. The company easily beat earnings estimates on Oct. 27. The company reported a 48% increase in EPS to $3.95. Revenue grew 20% to $14.9 billion.
The Street forecasts fourth-quarter earnings per share up 48% to $3.97 while revenue is expected to grow 14% to $15.8 billion.
Caterpillar stock is Thursday IBD shares of the day. On Wednesday, fellow heavy equipment manufacturer Titanium Machinery (TITN) spiked 26% after that beat earnings and revenue views with Q3 2023 results.
Other heavy equipment names include Deere (DE), Cummins (CMI) and Flowers for rent (URI) is also showing strong signs of strength in the current market.
With the global economy likely to slip into a recession in 2023, the timing seems unusual for CAT stock to make a big move. Even in the case of soft landings, residential construction, which accounts for 25% of Caterpillar’s construction industry revenue, is going into a pitfall.
Dow Jones CAT stock has a 94 IBD Composite Rating. Its Relative Strength Rating is 93 and its EPS Rating is 85.
UNH stock lost 0.1% to 536.16 on Friday. For the week, the stock is down 0.3%. That weekly action includes Wednesday’s 3.7% gain, a bounce from the 21-day and 50-day lines on high volume.
As of Friday’s close, UNH stock had a flat base with a buy point of 558.20, in addition to the previous cup-with-handle base.
Investors can buy UnitedHealth stock above Thursday’s high of 553. There’s plenty of trade around that area, including the previous 553.29 buy point.
Healthcare stocks, including UnitedHealth stock, continue to rally, as they tend to be more insulated from inflationary pressures. UNH stock has outperformed the broader market for a long time in 2022.
UnitedHealth’s business model aims to curb medical costs for its managed care arm, in part by providing medical services to its own cost-effective locations. UNH’s health insurance arm, UnitedHealthcare, is the largest, membership-based, health insurer in the country.
UnitedHealth is headquartered in Minnetonka, Minn. also had stable earnings in the third quarter. Managed care giant boosted profit outlook after beat earnings estimates for Q3 on October 14.
UnitedHealth earnings rose 28% to $5.79 a share, the second straight quarter of acceleration. Revenue rose nearly 12% to $80.894 billion.
Analysts expect fourth-quarter EPS to grow 32% to $5.90. Revenue is forecast to grow 12% to $82.3 billion, according to FactSet.
In terms of ratings, UNH stock ranks second in the rankings Medically managed care industry, behind People (HUM).
Dow Jones stock has a Composite Rating of 93 out of 99. It has a Relative Strength Rating of 85. The stock’s EPS Rating is 94.
Dow Jones Stock: Chevron
CVX stock fell 0.8% to 181.03 on Friday, slightly below the 182.50 buy point and just below the 21-day line. For the week, Chevron is down about 1.45%. CVX stock has been trading around that official buy point all month.
Crude oil prices have fallen again but increased again last week between some headwinds.
Crude oil futures were initially under some pressure as the White House eased oil sanctions on Venezuela. That would allow Chevron continues to produce oil in a Latin American country, for a period of at least six months.
But signs that China will ease Covid policies have helped stabilize crude prices. Meanwhile, it is possible that OPEC+, which includes Russia, could announce an oil production cut when it meets on Sunday.
End of October, Chevron tops third-quarter earnings views. Chevron reported an 88% increase in EPS to $5.56. Revenue rose 59% to $66.6 billion in the third quarter.
Wall Street expects earnings to jump 76% to $4.51 a share in the fourth quarter. Revenue is forecast to grow 18% to $56.6 billion, according to FactSet.
California-based Chevron ranks ninth in IBD’s Group of general oil and gas industry. CVX stock has a Composite Rating of 94 and a Relative Strength Rating of 94. Additionally, the stock has an EPS Rating of 79.
Goldman Sachs stock
GS shares fell 0.8% on Friday to 380.58. For the week, the stock was down 2.1%. The investment bank has a buy point of 389.68 from a 35% deep handle cup model as of November 2021.
Investors might also view the recent pause as a price threshold just above the buy range from the bottom Goldman stock cleared in early November.
The 21-day moving average is close to catching up, while the 50-day line is starting to rally. The relative strength line is at a multi-year high, reflecting GS stock’s outperformance against the S&P 500.
On October 18th, Goldman tops earnings estimates with its third quarter results. The investment bank and financial services company reported earnings that fell to $8.25 per share, down 44% as revenue fell to $11.98 billion, down 12% for the year.
Goldman Sachs investment banking revenue fell 57% for the year to $1.58 billion as the company saw significant declines in its corporate lending, financial advisory and underwriting revenue. . However, Global Markets revenue grew 11% to $6.2 billion, driven by growth from the Fixed Income, Currencies and Commodities (FICC) segment.
FICC’s revenue grew 44% to $3.53 billion on the back of significantly increased sales of interest rate, currency, commodity and credit products. However, Goldman noted that mortgage revenue fell significantly but mortgage and finance revenue increased.
Analysts forecast a 32% drop in Q4 EPS to $7.36 while revenue is expected to drop 10% to $11.3 billion.
Dow Jones Goldman Sachs stock ranks third in the rankings Banking-Money Center industry group. The GS has a Composite Rating of 86. Its Relative Strength Rating is 89 and its EPS Rating is 58.
Please follow Kit Norton on Twitter @KitNorton for more insurance.
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