These Are The Best Dow Jones Stocks Of 2024 Thus Far

The Dow Jones Industrial Average has seen modest growth in the first six months of 2024, rising by 3.7% through June 27. However, the top five Dow stocks of 2024 have significantly outpaced even the Nasdaq’s impressive year-to-date rally of 18.6%. Led by Amazon, these stocks have surged to record highs, with three forming bases. Walmart and Microsoft are extended, indicating that shares have moved beyond buy range. Each of these stocks boasts a Composite Rating above 90, reflecting their strong performance based on fundamental and technical metrics.

Amazon Stock

Year-to-date Performance: +30.2%

Q2 Performance: +9.9%

Composite Rating: 93

EPS Rating: 81

RS Rating: 90

Amazon has been the standout performer among Dow Jones stocks in 2024, with shares jumping 30.2% so far. The e-commerce giant hit the IBD Leaderboard as it cleared a 191.70 buy point, reaching a record high in intraday action. Despite revenue guidance for Q2 disappointing, Amazon’s first-quarter earnings beat estimates, driven by growth in Amazon Web Services (AWS) and advertising revenue. The introduction of its AI assistant, Amazon Q, to AWS enterprise customers could help it compete with Microsoft and Alphabet in the cloud and AI space. Amazon joined the Dow Jones Industrial Average in February, replacing Walgreens Boots Alliance (WBA).

Walmart Stock

Year-to-date Performance: +29.2%

Q2 Performance: +12.9%

Composite Rating: 97

EPS Rating: 87

RS Rating: 90

Walmart’s stock has rocketed 29.2% year-to-date and 12.9% in Q2. Though it is extended from breakouts past 61.66 and 56.65, it remains a top retail play. Walmart broke out in mid-May after issuing an optimistic full-year outlook following a Q1 earnings beat. The company continues to attract more frequent and new shoppers, including higher-income shoppers amid persistent inflation. As the nation’s largest grocer, Walmart benefits from consumers prioritizing groceries over general merchandise. E-commerce sales also continue to grow.

American Express Stock

Year-to-date Performance: +21.9%

Q2 Performance: < 1%

Composite Rating: 89

EPS Rating: 93

RS Rating: 90

American Express shares have surged 21.9% so far this year, though they have consolidated in Q2. The stock shows a flat base with a 244.41 buy point. In April, American Express affirmed full-year guidance after a Q1 earnings beat, driven by high-spending, high-credit-quality customers. New card acquisitions accelerated to 3.4 million in Q1, demonstrating the company’s robust customer growth.

Microsoft Stock

Year-to-date Performance: +20.4%

Q2 Performance: +7.6%

Composite Rating: 94

EPS Rating: 97

RS Rating: 90

Microsoft stock has jumped 20.4% year-to-date, with a 7.6% gain in Q2. It is just above the 5% chase zone from a May breakout past 430.82, reaching a record high in intraday action. Microsoft continues to benefit from cloud growth and its investment in generative AI technologies like OpenAI’s ChatGPT. This makes Microsoft a leading player in AI, enhancing its long-term growth prospects.

Merck Stock

Year-to-date Performance: +19.1%

Q2 Performance: Negative

Composite Rating: 85

EPS Rating: 44

RS Rating: 81

Merck’s stock has risen 19.1% this year, though it saw a decline in the final week of June, taking Q2 returns into negative territory. The company’s breakout attempt past 133.10 has fizzled, but Merck raised full-year earnings guidance after a Q1 earnings beat. Strong sales of its Keytruda cancer drug and Gardasil HPV vaccine contributed to the beat. Merck is also launching Winrevair, a major new drug for treating pulmonary arterial hypertension.

Best Dow Stocks Of Q2

In addition to Amazon, Microsoft, and Walmart, other notable Dow stock performers in Q2 include Apple (AAPL), 3M (MMM), Amgen (AMGN), and Goldman Sachs (GS). Apple saw the biggest advance, up 24% for the quarter. Goldman Sachs is in a six-week flat base with a 471.48 buy point. Amgen is within 3% 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.

These top-performing Dow stocks have demonstrated robust performance and significant gains in 2024, reflecting their strong market positions and growth potential.

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