The Dow Jones Industrial Average has seen a modest increase of 4% this year, lagging behind the S&P 500 and Nasdaq-100. This underperformance can be attributed to its limited selection of 30 companies and a focus on slower-growing industries, as well as its price-weighted index structure. Despite this, the Dow 30 companies, including Amazon, Walmart, and IBM, offer stable investment options.
Amazon, the largest e-commerce and cloud infrastructure company, saw a slowdown in revenue growth in 2022 but rebounded in 2023 with a 12% increase. Analysts predict further growth in revenue and profits for the company this year, making its shares look reasonably valued for potential growth. Walmart, a retail giant competing with Amazon, has diversified its business by expanding its e-commerce marketplace and international presence. With projected growth in revenue and adjusted EPS for fiscal 2025, Walmart’s stock offers value for investors.
IBM, once considered outdated in the tech industry, revamped its business by divesting slower-growing units and focusing on AI and hybrid cloud services. This shift has led to revenue and adjusted EPS growth in recent years, with further forecasts for 2024. Despite modest growth rates, IBM’s stock value is seen as cheap with a high forward dividend yield, indicating potential for long-term gains.
In conclusion, Amazon, Walmart, and IBM are three Dow stocks with strong potential for growth in 2024 and beyond. Their diverse business strategies and focus on emerging technologies position them as stable options for investors seeking long-term returns.
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https://www.fool.com/investing/2024/06/26/these-3-dow-stocks-are-set-to-soar-in-2024-and-bey/