3 Dow Jones Stocks to Buy While They're Cheap – Nasdaq

Shutterstock photo

By Aaron Levitt, InvestorPlace Contributor

The New Year isn’t shaping up to be a good one for investors. So far, U.S. stocks have been on a one-way train ride downwards. And nowhere is that drop more painfully felt than in the venerable Dow Jones Industrial Average.

The widely touted index of the “Bedrock of America” — as represented by the SPDR Dow Jones Industrial Average ETF (DIA) — is down as much as a whopping 9% since the start of 2016. That builds upon loses occurring at the end of last year. And while you can blame the index’s potentially flawed construction, it still highlights just how far we’ve fallen in a short amount of time.

But investors shouldn’t abandon Dow Jones stocks just yet.

PLUS: 8 Stocks to Buy Now Before the Market Realizes Its Mistake

The recent drop to the Dow Jones has made many stocks within the index interesting bargains for long-term investors. On average, Dow stocks can be had for a price-to-earnings ratio of just 15.4 and dividend yield of nearly 3%.

Individually, investors can score even bigger deals on beaten down Dow Jones bargains. Don’t let the discount on America’s major players pass you by.

Here’s three Dow Jones Stocks to buy today.

Goldman Sachs Group Inc (GS)

Unrestricted greed does make you a lot of money. And when it comes to Dow Jones stocks, no one does that better than Goldman Sachs Group Inc (GS).

The investment bank has its hands in a variety of soups while trying to do “god’s work.” And “god’s work” seems to be a return to its classic business lines.

While stock, currency and derivatives trading made up the bulk of GS’s revenues in recent years, regulation and low interest rates have limited the effect of these businesses. That has Goldman plowing head-first back into traditional investment banking. The Dow Jones component was the number one firm in the world when it came to advising on M&A and was involved in deals worth in excess of $1 trillion dollars.

With many firms still looking for ways to find growth, M&A activity is set to rise in the new year. That should help the vampire squid produce plenty of profits.

Not that Goldman Sachs needs the help.

For the full year of 2015, GS earned $12.14 per share in profits and would have earned more if it wasn’t for settlements related to that unrestricted greed. Meanwhile, the 12.6% drop in shares so far this year has GS stock trading at a price-to-earnings ratio of about 13 and at a huge discount to its book value.

That cheapness makes the Dow Jones stock too good to pass up.

Visa Inc. (V)

Visa Inc. (V) is one of the brightest stars among the Dow Jones stocks and has one of the best long term futures. That’s because V is direct play on our growing cashless society.

V is a payment processor. It doesn’t actually do any lending. The firm simply moves money from one account to another along its secured payment network. It basically functions as a middleman. A middleman that rakes in the cash. Every time someone swipes their credit or debit card, V charges merchants, banks and other institutions a fee for using its payment network.

Think of it as commerce toll-way. And as a toll-way, Visa rakes in some serious cash. Payment volumes popped 12% in the latest quarter. That helped Visa realize an increase in profits of nearly 41%.

But the Dow Jones stock isn’t done yet. Visa has moved hard into mobile and digital payments through its Visa Checkout and mobile wallet applications. These “tap to pay” functions make it even easier for consumers to use plastic while paying. V has already seen a rise in the amount of payments when using these apps.

All in all, that will help drive the Dow Jones stock’s earnings — and its dividend — even more.

3M Co (MMM)

What do consumer products like Post-it notes, lint rollers and sponges have in common with electronic films and natural gas pipeline corrosion-preventive coatings? Nothing, expect that all belong to Dow Jones stalwart 3M Co (MMM).

3M’s breadth of product lines has helped 3M weather all sorts of economic conditions and business cycles throughout its long history. This wide range of products will also help it plow through the current market malaise. Last quarter, even taking in to consideration slowdowns in China and Europe, 3M managed to navigate the challenging economic environment well with a 3.5% increase in earnings per share.

And if investors need more convincing, just take a look at 3M’s dividend history. The firm has paid a dividend every year since 1916 and has increased the annual dividend for 57 consecutive years. That means its dividend has survived a lot of recessions, the Great Depression and the credit crisis/Great Recession

The 6%-plus drop in shares since the start of the year makes a great buying opportunity for longer-term shareholders. The Dow Jones stock can now be had for a forward P/E of around 17 and a 2.9% yield.

As of this writing, Aaron Levitt did not hold a position in any of the aforementioned stocks.

This article was originally published on InvestorPlace Media.

Plus:

5 Best Dividend Stocks Under $20

8 Best Cheap Stocks Under $8 to Buy Now

5 Mouthwatering Stocks on Sale Now

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.

Dow Jones Industrial Average Moving Today After Fed's Dovish Statement – Money Morning

Here’s Our Newest Recommendation – and We Think You’ll Agree It’s a “Killer” Stock

Former mutual fund manager and best-selling author Peter Lynch used to tell folks to “invest in what you know.”

It’s great advice.

Indeed, it’s advice that we’re going to follow today – with our newest recommendation.

And this recommendation… is a real “killer.”

This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.

3 Dow Jones Stocks to Buy While They're Cheap – Nasdaq

Shutterstock photo

By Aaron Levitt, InvestorPlace Contributor

The New Year isn’t shaping up to be a good one for investors. So far, U.S. stocks have been on a one-way train ride downwards. And nowhere is that drop more painfully felt than in the venerable Dow Jones Industrial Average.

The widely touted index of the “Bedrock of America” — as represented by the SPDR Dow Jones Industrial Average ETF (DIA) — is down as much as a whopping 9% since the start of 2016. That builds upon loses occurring at the end of last year. And while you can blame the index’s potentially flawed construction, it still highlights just how far we’ve fallen in a short amount of time.

But investors shouldn’t abandon Dow Jones stocks just yet.

PLUS: 8 Stocks to Buy Now Before the Market Realizes Its Mistake

The recent drop to the Dow Jones has made many stocks within the index interesting bargains for long-term investors. On average, Dow stocks can be had for a price-to-earnings ratio of just 15.4 and dividend yield of nearly 3%.

Individually, investors can score even bigger deals on beaten down Dow Jones bargains. Don’t let the discount on America’s major players pass you by.

Here’s three Dow Jones Stocks to buy today.

Goldman Sachs Group Inc (GS)

Unrestricted greed does make you a lot of money. And when it comes to Dow Jones stocks, no one does that better than Goldman Sachs Group Inc (GS).

The investment bank has its hands in a variety of soups while trying to do “god’s work.” And “god’s work” seems to be a return to its classic business lines.

While stock, currency and derivatives trading made up the bulk of GS’s revenues in recent years, regulation and low interest rates have limited the effect of these businesses. That has Goldman plowing head-first back into traditional investment banking. The Dow Jones component was the number one firm in the world when it came to advising on M&A and was involved in deals worth in excess of $1 trillion dollars.

With many firms still looking for ways to find growth, M&A activity is set to rise in the new year. That should help the vampire squid produce plenty of profits.

Not that Goldman Sachs needs the help.

For the full year of 2015, GS earned $12.14 per share in profits and would have earned more if it wasn’t for settlements related to that unrestricted greed. Meanwhile, the 12.6% drop in shares so far this year has GS stock trading at a price-to-earnings ratio of about 13 and at a huge discount to its book value.

That cheapness makes the Dow Jones stock too good to pass up.

Visa Inc. (V)

Visa Inc. (V) is one of the brightest stars among the Dow Jones stocks and has one of the best long term futures. That’s because V is direct play on our growing cashless society.

V is a payment processor. It doesn’t actually do any lending. The firm simply moves money from one account to another along its secured payment network. It basically functions as a middleman. A middleman that rakes in the cash. Every time someone swipes their credit or debit card, V charges merchants, banks and other institutions a fee for using its payment network.

Think of it as commerce toll-way. And as a toll-way, Visa rakes in some serious cash. Payment volumes popped 12% in the latest quarter. That helped Visa realize an increase in profits of nearly 41%.

But the Dow Jones stock isn’t done yet. Visa has moved hard into mobile and digital payments through its Visa Checkout and mobile wallet applications. These “tap to pay” functions make it even easier for consumers to use plastic while paying. V has already seen a rise in the amount of payments when using these apps.

All in all, that will help drive the Dow Jones stock’s earnings — and its dividend — even more.

3M Co (MMM)

What do consumer products like Post-it notes, lint rollers and sponges have in common with electronic films and natural gas pipeline corrosion-preventive coatings? Nothing, expect that all belong to Dow Jones stalwart 3M Co (MMM).

3M’s breadth of product lines has helped 3M weather all sorts of economic conditions and business cycles throughout its long history. This wide range of products will also help it plow through the current market malaise. Last quarter, even taking in to consideration slowdowns in China and Europe, 3M managed to navigate the challenging economic environment well with a 3.5% increase in earnings per share.

And if investors need more convincing, just take a look at 3M’s dividend history. The firm has paid a dividend every year since 1916 and has increased the annual dividend for 57 consecutive years. That means its dividend has survived a lot of recessions, the Great Depression and the credit crisis/Great Recession

The 6%-plus drop in shares since the start of the year makes a great buying opportunity for longer-term shareholders. The Dow Jones stock can now be had for a forward P/E of around 17 and a 2.9% yield.

As of this writing, Aaron Levitt did not hold a position in any of the aforementioned stocks.

This article was originally published on InvestorPlace Media.

Plus:

5 Best Dividend Stocks Under $20

8 Best Cheap Stocks Under $8 to Buy Now

5 Mouthwatering Stocks on Sale Now

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.

Dow closes up triple digits as oil rises; Facebook soars 15.5% – CNBC

U.S. stocks closed higher Thursday, as a rise in oil and gains in Facebook outweighed pressure from declines in biotech stocks and concerns about economic growth. (
Tweet This
)

The major averages ended off session highs but recovered from an intraday dip into negative territory.

The Nasdaq composite outperformed, closing nearly 0.9 percent higher as Facebook leaped 15.5 percent and Amazon gained 8.9 percent ahead of its earnings report. Apple closed up 0.7 percent.

The Dow Jones industrial average closed up 125 points after earlier rising 157 points. Caterpillar, Goldman Sachs and Chevron were the top contributors to gains in the index.

“It’s really Facebook and Amazon that are driving the market but my real concern as we pull back from the highs is this market is going to run up to resistance on any rally,” said Marc Chaikin, CEO of Chaikin Analytics. “The inability of the market to hold up on good news (from stocks) like Facebook, which is a key player, is not good news.”

U.S. crude oil futures settled above $33 a barrel, well off session highs but notching oil’s first three-day win streak of 2016.

“A lot of what’s going on in markets today is this uncertainty in oil and commodity prices and how that’s going to affect (energy companies),” said John Bredemus, vice president, Allianz Investment Management. That analysis gets easier “if we can get a solid basis of where energy prices will be.”

Earlier, the major U.S. averages fell into negative territory as declines in health care stocks weighed.

Read MoreEarly movers: F, BABA, CAT, UA, TWC, HOG, LLY, SWK, FB & more

The iShares Nasdaq Biotechnology ETF (IBB) closed down 3.66 percent. Earlier, the ETF fell more than 5 percent to drag the Nasdaq composite into negative territory.

Paul Yook, portfolio manager at BioShares Funds, attributed the declines in IBB to disappointment on earnings. “Generally, companies were pretty conservative with their guidance,” he said.

“It’s just been obviously the worst beginning to the year for biotech and investors are really fleeing and staying on the sidelines until they see some stabilization (in stock prices),” he said.

As of the close Thursday, IBB was down 22 percent for January and the year so far, on pace for its worst month ever. Year-to-date, the Nasdaq composite was off 10 percent, while the S&P 500 was down 7.37 percent. Health care fell 2.3 percent as the only S&P decliner Thursday and was the third-worst performer in the index for the year so far.

“My sense is it’s going to take some more catalysts to turn things around. Unfortunately, fourth-quarter earnings season is not doing it,” said Mike Bailey, director of research and chair at FBB Capital Partners. He said biotech stocks may not find a boost until first-quarter reports or product approvals come later in the year.

Celgene closed nearly 5 percent lower after posting fourth-quarter earnings that fell short of analysts’ estimates, hurt by higher costs. The company’s net profit fell to $561 million, or 69 cents per share, in the fourth quarter, from $613.9 million, or 74 cents per share, a year earlier, Reuters reported. The firm’s current quarter earnings guidance was slightly below FactSet expectations.

Eli Lilly closed 6 percent lower. The drug maker posted earnings in-line with estimates on revenue that beat. Lilly said it is upbeat about this year’s prospects based on a half dozen Food and Drug Administration approvals in 2015 and a number of successful late-stage trials.

Read MoreThe one number you need from Facebook’s earnings

With Thursday’s 15.5 percent gain, Facebook is up 4.25 percent year-to-date, one of the 80 S&P 500 stocks that are positive for the year so far.

Facebook reported earnings after the close Wednesday that blew past estimates, with the firm beating the $1 billion mark in quarterly net income for the first time ever.

Caterpillar reported adjusted fourth quarter profit of 74 cents per share, five cents above estimates, though revenue was light. Caterpillar does see full-year 2016 profit above current Street estimates, as it benefits from cost controls and restructuring. Shares closed 4.7 percent higher but are still off about 10 percent for the year so far.

Amazon.com, Microsoft, Visa and Electronic Arts are among companies due to report after the bell.

Read MoreDon’t be fooled by the flimsy rebound in stocks

Energy gained 3.15 percent to lead the S&P 500 higher. The index closed about half a percent higher, but well off an opening spike of more than 1 percent. The S&P is on pace for its worst month since May 2010.

“The huge higher open was clearly around oil prices higher and the talk about OPEC cutting production,” Bredemus said.

“I think the reality is setting in. I think reality is, after the Fed, is the Fed isn’t seeing anything better than we are,” he said. “It’s earnings season. Things are slow, things aren’t going as well as we hoped and oil is uncertain.”

Earlier, Dow futures jumped more than 150 points in pre-market trade, shaking off pressure from a sharp miss on durable goods, as oil gained.

“Obviously, certainly crude is driving the bus,” said Jeremy Klein, chief market strategist at FBN Securities. He also noted support for stocks from some encouraging earnings reports and expectations the Federal Reserve will hold off on raising rates in the near-term.

Oil gained on speculation that major producers may cooperate to cut production.

U.S. crude settled up 92 cents, or 2.85 percent, at $33.22 a barrel, after earlier topping $34.50 to its highest since Jan. 6. Brent settled up about 2.4 percent at $33.89 a barrel, for its first three-day win streak since November.

Russian Energy Minister Alexander Novak said Thursday that Saudi Arabia had proposed to cut oil production by up to 5 percent by each country in order to support weak oil prices, Reuters reported.

But Saudi Arabia has not proposed cutting back production or asked Russia to do the same, Dow Jones reported, citing a senior Gulf OPEC delegate.

Read MoreChances of OPEC, Russia oil deal slim to none

Dow futures briefly turned negative in pre-market trade after December durable goods orders declined far more than expected.

“While it wasn’t good news, it was also not new news. I don’t think that set the tone for today,” said Kate Warne, investment strategist at Edward Jones.

Durable goods fell 5.1 percent in December, far more than expectations for a less-than 1 percent decline. Ex-transportation, the figure declined 1.2 percent.

“That’s another indication the economy is continuing to slow and an indication the Fed is going to hold off in the first half of this year,” said Peter Cardillo, chief market economist at First Standard Financial.

Read MoreFactory slowdown hits these states hardest

Weekly jobless claims came in at 278,000.

Pending home sales rose just 0.1 percent in December from a downwardly revised November print.

Treasury yields briefly turned higher as oil surged before holding lower, with the 10-year yield at 1.98 percent and the 2-year yield at 0.81 percent.

The Treasury auctioned $29 billion in 7-year notes at a high yield of 1.759 percent.

The U.S. dollar held about 0.3 percent lower against major world currencies, with the euro around $1.095 and the yen at 118.83 yen against the greenback.

U.S. stocks fell more than 1 percent Wednesday after the Federal Reserve meeting statement renewed concerns about global growth. Disappointing earnings reports from Apple and Boeing also weighed heavily on stocks, despite gains in oil prices.

“I think they’re trying to convey a very nuanced message and investors were looking for something that would say they wouldn’t raise rates at the March meeting,” Warne said.

The Dow Jones industrial average closed up 125.18 points, or 0.79 percent, at 16,069.64, with Caterpillar leading advancers and American Express the greatest decliner.

The S&P 500 closed up 10.41 points, or 0.55 percent, to 1,893.36, with energy leading nine sectors higher and health care the only laggard.

The Nasdaq composite closed up 38.51 points, or 0.86 percent, at 4,506.68.

The Dow transports fell 0.8 percent.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, held near 22.5.

About two stocks advanced for every decliner on the New York Stock Exchange, with an exchange volume of nearly 1.1 billion and a composite volume of almost 4.7 billion.

Gold futures for April delivery settled down 20 cents at $1,116.10 an ounce.

Reuters and CNBC’s Peter Schacknow contributed to this report

On tap this week:

Thursday

Earnings: Amazon.com, Amgen, Microsoft, Visa, Electronic Arts, KLA-Tencor, Western Digital

Friday

Earnings: AbbVie, Chevron, Colgate-Palmolive, Honda Motor, Honeywell, MasterCard

8:30 a.m. Real GDP Q4; international trade; employment cost index

9:45 a.m. Chicago PMI

10 a.m. Consumer sentiment

3:30 p.m. San Francisco Fed President John Williams on panel

*Planner subject to change.

More From CNBC.com:

This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.

Dow Jones Industrial Average Moving Today After Fed's Dovish Statement – Money Morning

Here’s Our Newest Recommendation – and We Think You’ll Agree It’s a “Killer” Stock

Former mutual fund manager and best-selling author Peter Lynch used to tell folks to “invest in what you know.”

It’s great advice.

Indeed, it’s advice that we’re going to follow today – with our newest recommendation.

And this recommendation… is a real “killer.”

This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.

3 Dow Jones Stocks to Buy While They're Cheap – Nasdaq

Shutterstock photo

By Aaron Levitt, InvestorPlace Contributor

The New Year isn’t shaping up to be a good one for investors. So far, U.S. stocks have been on a one-way train ride downwards. And nowhere is that drop more painfully felt than in the venerable Dow Jones Industrial Average.

The widely touted index of the “Bedrock of America” — as represented by the SPDR Dow Jones Industrial Average ETF (DIA) — is down as much as a whopping 9% since the start of 2016. That builds upon loses occurring at the end of last year. And while you can blame the index’s potentially flawed construction, it still highlights just how far we’ve fallen in a short amount of time.

But investors shouldn’t abandon Dow Jones stocks just yet.

PLUS: 8 Stocks to Buy Now Before the Market Realizes Its Mistake

The recent drop to the Dow Jones has made many stocks within the index interesting bargains for long-term investors. On average, Dow stocks can be had for a price-to-earnings ratio of just 15.4 and dividend yield of nearly 3%.

Individually, investors can score even bigger deals on beaten down Dow Jones bargains. Don’t let the discount on America’s major players pass you by.

Here’s three Dow Jones Stocks to buy today.

Goldman Sachs Group Inc (GS)

Unrestricted greed does make you a lot of money. And when it comes to Dow Jones stocks, no one does that better than Goldman Sachs Group Inc (GS).

The investment bank has its hands in a variety of soups while trying to do “god’s work.” And “god’s work” seems to be a return to its classic business lines.

While stock, currency and derivatives trading made up the bulk of GS’s revenues in recent years, regulation and low interest rates have limited the effect of these businesses. That has Goldman plowing head-first back into traditional investment banking. The Dow Jones component was the number one firm in the world when it came to advising on M&A and was involved in deals worth in excess of $1 trillion dollars.

With many firms still looking for ways to find growth, M&A activity is set to rise in the new year. That should help the vampire squid produce plenty of profits.

Not that Goldman Sachs needs the help.

For the full year of 2015, GS earned $12.14 per share in profits and would have earned more if it wasn’t for settlements related to that unrestricted greed. Meanwhile, the 12.6% drop in shares so far this year has GS stock trading at a price-to-earnings ratio of about 13 and at a huge discount to its book value.

That cheapness makes the Dow Jones stock too good to pass up.

Visa Inc. (V)

Visa Inc. (V) is one of the brightest stars among the Dow Jones stocks and has one of the best long term futures. That’s because V is direct play on our growing cashless society.

V is a payment processor. It doesn’t actually do any lending. The firm simply moves money from one account to another along its secured payment network. It basically functions as a middleman. A middleman that rakes in the cash. Every time someone swipes their credit or debit card, V charges merchants, banks and other institutions a fee for using its payment network.

Think of it as commerce toll-way. And as a toll-way, Visa rakes in some serious cash. Payment volumes popped 12% in the latest quarter. That helped Visa realize an increase in profits of nearly 41%.

But the Dow Jones stock isn’t done yet. Visa has moved hard into mobile and digital payments through its Visa Checkout and mobile wallet applications. These “tap to pay” functions make it even easier for consumers to use plastic while paying. V has already seen a rise in the amount of payments when using these apps.

All in all, that will help drive the Dow Jones stock’s earnings — and its dividend — even more.

3M Co (MMM)

What do consumer products like Post-it notes, lint rollers and sponges have in common with electronic films and natural gas pipeline corrosion-preventive coatings? Nothing, expect that all belong to Dow Jones stalwart 3M Co (MMM).

3M’s breadth of product lines has helped 3M weather all sorts of economic conditions and business cycles throughout its long history. This wide range of products will also help it plow through the current market malaise. Last quarter, even taking in to consideration slowdowns in China and Europe, 3M managed to navigate the challenging economic environment well with a 3.5% increase in earnings per share.

And if investors need more convincing, just take a look at 3M’s dividend history. The firm has paid a dividend every year since 1916 and has increased the annual dividend for 57 consecutive years. That means its dividend has survived a lot of recessions, the Great Depression and the credit crisis/Great Recession

The 6%-plus drop in shares since the start of the year makes a great buying opportunity for longer-term shareholders. The Dow Jones stock can now be had for a forward P/E of around 17 and a 2.9% yield.

As of this writing, Aaron Levitt did not hold a position in any of the aforementioned stocks.

This article was originally published on InvestorPlace Media.

Plus:

5 Best Dividend Stocks Under $20

8 Best Cheap Stocks Under $8 to Buy Now

5 Mouthwatering Stocks on Sale Now

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.

Dow Jones Industrial Average Moving Today After Fed's Dovish Statement – Money Morning

Here’s Our Newest Recommendation – and We Think You’ll Agree It’s a “Killer” Stock

Former mutual fund manager and best-selling author Peter Lynch used to tell folks to “invest in what you know.”

It’s great advice.

Indeed, it’s advice that we’re going to follow today – with our newest recommendation.

And this recommendation… is a real “killer.”

This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.

3 Dow Jones Stocks to Buy While They're Cheap – Nasdaq

Shutterstock photo

By Aaron Levitt, InvestorPlace Contributor

The New Year isn’t shaping up to be a good one for investors. So far, U.S. stocks have been on a one-way train ride downwards. And nowhere is that drop more painfully felt than in the venerable Dow Jones Industrial Average.

The widely touted index of the “Bedrock of America” — as represented by the SPDR Dow Jones Industrial Average ETF (DIA) — is down as much as a whopping 9% since the start of 2016. That builds upon loses occurring at the end of last year. And while you can blame the index’s potentially flawed construction, it still highlights just how far we’ve fallen in a short amount of time.

But investors shouldn’t abandon Dow Jones stocks just yet.

PLUS: 8 Stocks to Buy Now Before the Market Realizes Its Mistake

The recent drop to the Dow Jones has made many stocks within the index interesting bargains for long-term investors. On average, Dow stocks can be had for a price-to-earnings ratio of just 15.4 and dividend yield of nearly 3%.

Individually, investors can score even bigger deals on beaten down Dow Jones bargains. Don’t let the discount on America’s major players pass you by.

Here’s three Dow Jones Stocks to buy today.

Goldman Sachs Group Inc (GS)

Unrestricted greed does make you a lot of money. And when it comes to Dow Jones stocks, no one does that better than Goldman Sachs Group Inc (GS).

The investment bank has its hands in a variety of soups while trying to do “god’s work.” And “god’s work” seems to be a return to its classic business lines.

While stock, currency and derivatives trading made up the bulk of GS’s revenues in recent years, regulation and low interest rates have limited the effect of these businesses. That has Goldman plowing head-first back into traditional investment banking. The Dow Jones component was the number one firm in the world when it came to advising on M&A and was involved in deals worth in excess of $1 trillion dollars.

With many firms still looking for ways to find growth, M&A activity is set to rise in the new year. That should help the vampire squid produce plenty of profits.

Not that Goldman Sachs needs the help.

For the full year of 2015, GS earned $12.14 per share in profits and would have earned more if it wasn’t for settlements related to that unrestricted greed. Meanwhile, the 12.6% drop in shares so far this year has GS stock trading at a price-to-earnings ratio of about 13 and at a huge discount to its book value.

That cheapness makes the Dow Jones stock too good to pass up.

Visa Inc. (V)

Visa Inc. (V) is one of the brightest stars among the Dow Jones stocks and has one of the best long term futures. That’s because V is direct play on our growing cashless society.

V is a payment processor. It doesn’t actually do any lending. The firm simply moves money from one account to another along its secured payment network. It basically functions as a middleman. A middleman that rakes in the cash. Every time someone swipes their credit or debit card, V charges merchants, banks and other institutions a fee for using its payment network.

Think of it as commerce toll-way. And as a toll-way, Visa rakes in some serious cash. Payment volumes popped 12% in the latest quarter. That helped Visa realize an increase in profits of nearly 41%.

But the Dow Jones stock isn’t done yet. Visa has moved hard into mobile and digital payments through its Visa Checkout and mobile wallet applications. These “tap to pay” functions make it even easier for consumers to use plastic while paying. V has already seen a rise in the amount of payments when using these apps.

All in all, that will help drive the Dow Jones stock’s earnings — and its dividend — even more.

3M Co (MMM)

What do consumer products like Post-it notes, lint rollers and sponges have in common with electronic films and natural gas pipeline corrosion-preventive coatings? Nothing, expect that all belong to Dow Jones stalwart 3M Co (MMM).

3M’s breadth of product lines has helped 3M weather all sorts of economic conditions and business cycles throughout its long history. This wide range of products will also help it plow through the current market malaise. Last quarter, even taking in to consideration slowdowns in China and Europe, 3M managed to navigate the challenging economic environment well with a 3.5% increase in earnings per share.

And if investors need more convincing, just take a look at 3M’s dividend history. The firm has paid a dividend every year since 1916 and has increased the annual dividend for 57 consecutive years. That means its dividend has survived a lot of recessions, the Great Depression and the credit crisis/Great Recession

The 6%-plus drop in shares since the start of the year makes a great buying opportunity for longer-term shareholders. The Dow Jones stock can now be had for a forward P/E of around 17 and a 2.9% yield.

As of this writing, Aaron Levitt did not hold a position in any of the aforementioned stocks.

This article was originally published on InvestorPlace Media.

Plus:

5 Best Dividend Stocks Under $20

8 Best Cheap Stocks Under $8 to Buy Now

5 Mouthwatering Stocks on Sale Now

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.

Dow Jones Industrial Average Moving Today After Fed's Dovish Statement – Money Morning

Here’s Our Newest Recommendation – and We Think You’ll Agree It’s a “Killer” Stock

Former mutual fund manager and best-selling author Peter Lynch used to tell folks to “invest in what you know.”

It’s great advice.

Indeed, it’s advice that we’re going to follow today – with our newest recommendation.

And this recommendation… is a real “killer.”

This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.

Stocks higher amid oil rise; Facebook soars – CNBC

U.S. stocks held higher in choppy trade Thursday, amid declines in biotech stocks, as oil prices rose and Facebook soared on a solid quarterly report. (
Tweet This
)

The Nasdaq composite outperformed, briefly rising more than 1 percent as Facebook leaped more than 16.5 percent and Amazon gained ahead of its earnings report. Apple held more than 1 percent higher in afternoon trade.

The Dow Jones industrial average gained 150 points in afternoon trade, more than reclaiming opening gains of more than 100 points after falling into negative territory in morning trade. Caterpillar, Goldman Sachs and Chevron were among the top contributors to gains in the index.

“It’s really Facebook and Amazon that are driving the market but my real concern as we pull back from the highs is this market is going to run up to resistance on any rally,” said Marc Chaikin, CEO of Chaikin Analytics. “The inability of the market to hold up on good news (from stocks) like Facebook, which is a key player, is not good news.”

U.S. crude oil futures settled above $33 a barrel, well off session highs but notching oil’s first three-day win streak of 2016.

“A lot of what’s going on in markets today is this uncertainty in oil and commodity prices and how that’s going to affect (energy companies),” said John Bredemus, vice president, Allianz Investment Management. That analysis gets easier “if we can get a solid basis of where energy prices will be.”

Earlier, the major U.S. averages fell into negative territory as declines in health care stocks weighed.

The iShares Nasdaq Biotechnology ETF (IBB) held about 3.5 percent lower after earlier falling more than 5 percent and briefly dragging the Nasdaq composite into negative territory.

Paul Yook, portfolio manager at BioShares Funds, attributed the declines in IBB to disappointment on earnings. “Generally, companies were pretty conservative with their guidance,” he said.

“It’s just been obviously the worst beginning to the year for biotech and investors are really fleeing and staying on the sidelines until they see some stabilization (in stock prices),” he said.

As of intraday trade Thursday, the iShares Nasdaq Biotechnology ETF (IBB) was down more than 20 percent for the year so far.

Celgene fell more than 5.5 percent in afternoon trade. The firm posted fourth-quarter earnings that fell short of analysts’ estimates, hurt by higher costs. The company’s net profit fell to $561 million, or 69 cents per share, in the fourth quarter, from $613.9 million, or 74 cents per share, a year earlier, Reuters reported. The firm’s current quarter earnings guidance was slightly below FactSet expectations.

Eli Lilly also declined more than 5.5 percent in afternoon trade. The drug maker posted earnings in-line with estimates on revenue that beat. Lilly said it is upbeat about this year’s prospects based on a half dozen Food and Drug Administration approvals in 2015 and a number of successful late-stage trials.

Amazon.com, Microsoft, Visa and Electronic Arts are among companies due to report after the bell.

The S&P 500 also tried for gains as energy held more than 2.5 percent higher, while health care declined more than 2 percent as the only decliner in afternoon trade. Earlier, energy gained more than 3.5 percent to lead S&P 500 advancers, with the index spiking 1 percent in opening trade.

“The huge higher open was clearly around oil prices higher and the talk about OPEC cutting production,” Bredemus said.

“I think the reality is setting in. I think reality is, after the Fed, is the Fed isn’t seeing anything better than we are,” he said. “It’s earnings season. Things are slow, things aren’t going as well as we hoped and oil is uncertain.”

Earlier, Dow futures jumped more than 150 points in pre-market trade, shaking off pressure from a sharp miss on durable goods, as oil gained.

“Obviously, certainly crude is driving the bus,” said Jeremy Klein, chief market strategist at FBN Securities. He also noted support for stocks from some encouraging earnings reports and expectations the Federal Reserve will hold off on raising rates in the near-term.

U.S. crude settled up 92 cents, or 2.85 percent, at $33.22 a barrel, well off session highs. Earlier, WTI surged above $34.50 to its highest since Jan. 6.

Brent traded just above $34 a barrel in afternoon trade after earlier topping $35.50 a barrel on speculation that major producers may cooperate to cut production.

Russian Energy Minister Alexander Novak said Thursday that Saudi Arabia had proposed to cut oil production by up to 5 percent by each country in order to support weak oil prices, Reuters reported.

But Saudi Arabia has not proposed cutting back production or asked Russia to do the same, Dow Jones reported, citing a senior Gulf OPEC delegate.

Read MoreChances of OPEC, Russia oil deal slim to none

U.S. stocks fell more than 1 percent Wednesday after the Federal Reserve meeting statement renewed concerns about global growth. Disappointing earnings reports from Apple and Boeing also weighed heavily on stocks, despite gains in oil prices.

“I think they’re trying to convey a very nuanced message and investors were looking for something that would say they wouldn’t raise rates at the March meeting,” said Kate Warne, investment strategist at Edward Jones.

Pending home sales rose just 0.1 percent in December from a downwardly revised November print.

Treasury yields held lower in afternoon trade, with the 10-year yield at 1.98 percent and the 2-year yield at 0.82 percent.

The Treasury auctioned $29 billion in 7-year notes at a high yield of 1.759 percent.

The U.S. dollar traded nearly half a percent lower against major world currencies, with the euro around $1.096 and the yen at 118.70 yen against the greenback.

In corporate news, Facebook reported earnings after the close Wednesday that blew past estimates, with the firm beating the $1 billion mark in quarterly net income for the first time ever.

Caterpillar reported adjusted fourth quarter profit of 74 cents per share, five cents above estimates, though revenue was light. Caterpillar does see full-year 2016 profit above current Street estimates, as it benefits from cost controls and restructuring. Shares rose more than 4 percent in afternoon trade.

Dow futures briefly turned negative in pre-market trade after December durable goods orders declined far more than expected.

“While it wasn’t good news, it was also not new news. I don’t think that set the tone for today,” Warne said.

Durable goods fell 5.1 percent in December, far more than expectations for a less-than 1 percent decline. Ex-transportation, the figure declined 1.2 percent.

“That’s another indication the economy is continuing to slow and an indication the Fed is going to hold off in the first half of this year,” said Peter Cardillo, chief market economist at First Standard Financial.

Read MoreFactory slowdown hits these states hardest

Weekly jobless claims came in at 278,000.

Treasury yields edged lower after the durable goods report, with the 10-year dipping below 2 percent, before mostly turning higher as oil climbed.

In afternoon trade, the Dow Jones industrial average gained 63 points, or 0.40 percent, to 16,011, with Caterpillar leading advancers and American Express the greatest decliner.

The S&P 500 rose 9 points, or 0.46 percent, to 1,891, with energy leading nine sectors higher and health care the only laggard.

The Nasdaq composite gained 30 points, or 0.66 percent, to 4,498.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 22.5.

About two stocks advanced for every decliner on the New York Stock Exchange, with an exchange volume of 604 million and a composite volume of 2.9 billion.

Crude oil futures for March delivery gained $1.07 to $33.37 a barrel on the New York Mercantile Exchange.

Gold futures for April delivery settled down 20 cents at $1,116.10 an ounce.

Read MoreEarly movers: F, BABA, CAT, UA, TWC, HOG, LLY, SWK, FB & more

Reuters and CNBC’s Peter Schacknow contributed to this report

On tap this week:

Thursday

Earnings: Amazon.com, Amgen, Microsoft, Visa, Electronic Arts, KLA-Tencor, Western Digital

Friday

Earnings: AbbVie, Chevron, Colgate-Palmolive, Honda Motor, Honeywell, MasterCard

8:30 a.m. Real GDP Q4; international trade; employment cost index

9:45 a.m. Chicago PMI

10 a.m. Consumer sentiment

3:30 p.m. San Francisco Fed President John Williams on panel

*Planner subject to change.

More From CNBC.com:

This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.