The Top Ten Dow Industrial Stocks for the Week
Value stocks have been outperforming growth stocks in the short-term, with the leading technology-related stocks being sold while the Dow Industrial components, aka value stocks, being bought by institutions.
Dow Industrials – Value Stocks
Many of the big cap value stocks that comprise the Dow Industrials have outperformed lately, with the Top Ten names ranked by performance as of the close on Monday.
Walmart (WMT) Upgrade – Buy
Deutsch Bank analysts upgraded the stock to buy from hold, issuing a price target adjustment ($89 > $113). WMT is (+0.81%) higher in pre-market trading.
Pharmaceutical Stocks – MRK PFE LLY
Pharmaceutical stocks have been very persistent winners, as value stocks were bought heavily in the summer.
Most of the well-known names are printing in bullish patterns.
MRK broke out of a weekly cup with handle pattern 11 weeks ago, on above-average volume. The depth of the cup points to a measured move of approximately 12 points, which renders a target of 76.00 (+/-).
ABT, PFE, and LLY are additional pharmaceutical “value” stocks that are worth a look. Abbott (ABT) pulled back to the 20d and found buyers. Pfizer (PFE) is trending. Eli Lilly (LLY) is building an ascending flag at 52-week highs. Of these three, ABT is the better candidate as it pulled back to the 20d. Watch for a follow through.
Disney (DIS) – Another Value Stock
Dow Industrial Component DIS appears to be setting up for a push away from its breakout zone on this weekly chart.
Caterpillar (CAT) Value
Caterpillar continues its march back to 52-week highs. The current consolidation marks the beginning of a potential breakout of a two-year bullish trend.
WMT, DIS, MRK, UTX, and VZ are trading higher this morning in light volume.
Futures are bouncing off pre-market lows.
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Happy Trading,
Vinny
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