Amazon.com (AMZN), Walmart (WMT) and American Express (AXP) count among the five best Dow Jones stocks of 2024 so far.Microsoft (MSFT) and Merck (MRK) also make the cut.
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Best Dow Jones Stocks Of 2024
The Dow Jones Industrial Average has lagged in the first six months of 2024, up 3.7% through June 27. But the five top Dow stocks of 2024 have outpaced even the Nasdaq's stock market-leading year-to-date rally of 18.6%.
Led by Amazon stock, the best Dow Jones stocks all surged in 2024 to record highs. Three of the top five — Amazon.com, American Express and Merck — have formed bases. Walmart stock and Microsoft are extended, meaning shares have moved beyond buy range.
Walmart, Amazon and Microsoft stock each flourishes a Composite Rating above 90. The IBD Composite Rating, which ranges from 1 (worst) to 99 (best), gives an instant overview of a stock based on a combination of fundamental and technical metrics. American Express stock isn't far behind with a Composite Rating of 89, and Merck stock has a solid 85.
Amazon Stock
Shares of Amazon.com have jumped 30.2% so far in 2024, making it the best of the best Dow Jones stocks. Amazon stock is up 9.9% in Q2 through Thursday June 27.
The e-commerce giant hit the IBD Leaderboard stock as it cleared a 191.70 buy point on Wednesday. Shares rose in buy range on Thursday, pegging a record high in intraday stock market action.
The e-commerce giant nabs a 93 Composite Rating. Its EPS Rating is 81 and RS Rating is 90.
In April, Amazon beat first-quarter earnings estimates, driven by growth in Amazon Web Services (AWS) and advertising revenue. But revenue guidance for the current second quarter disappointed.
Amazon also brought its artificial intelligence (AI) assistant Amazon Q to its AWS enterprise customers. That could help it narrow the gap with major cloud and AI rivals Microsoft and Alphabet (GOOGL).
The e-commerce giant joined the Dow Jones Industrial Average in February, replacing Walgreens Boots Alliance (WBA).
Walmart Stock
Shares of Walmart have rocketed 29.2% year to date. In Q2 so far, Walmart stock has risen 12.9%.
Walmart stock is extended from breakouts past 61.66 and 56.65 in mid-May and early February, respectively. That means shares are not in buy range.
This top retail play has a superior 97 Composite Rating. Its EPS Rating is 87. A 90 RS Rating means that Walmart stock has outperformed 90% of all stocks in IBD's database over the past year.
Walmart stock broke out in mid-May after the big-box retailer gave an optimistic full-year outlook, following a Q1 earnings beat.
Notably, Walmart said it continues to draw more frequent and new shoppers. More higher-income shoppers are turning to Walmart stores amid persistent inflation, the company said.
Inflation-weary consumers are prioritizing groceries over general merchandise, Walmart, the nation's largest grocer, also said. E-commerce sales continue to grow for this Amazon rival.
American Express Stock
Shares of the credit card company have surged 21.9% so far this year. But shares consolidated for much of Q2, gaining less than 1%.
American Express stock shows a flat base with a 244.41 buy point, according to MarketSurge pattern recognition. Shares are more than 5% below the entry and under the 10-week moving average, as well.
This third-best Dow Jones stock of 2024 earns an 89 Composite Rating. Its EPS Rating is 93 and RS Rating is 90.
In April, American Express affirmed full-year guidance after first-quarter earnings beat estimates.
"We continue to attract high-spending, high credit-quality customers to the franchise," American Express Chief Executive Officer Stephen Squeri said. In Q1, new card acquisitions accelerated quarter over quarter to 3.4 million, he added.
Microsoft Stock
Shares of Microsoft have jumped 20.4% so far this year. That includes a 7.6% Q2 gain.
Microsoft stock is just above the 5% chase zone from a May breakout past 430.82. Shares achieved a record high in intraday action on Thursday.
This IBD Long-Term Leader stock holds a Composite Rating of 94. Its EPS Rating is 97 and RS Rating is 90.
Like Amazon, Microsoft beat earnings estimates for its latest quarter driven by cloud growth.
Microsoft-backed startup OpenAI's ChatGPT is one of many "generative AI" technologies that can create text, images, video and programming code on their own.
Generative AI technology is being used in marketing, advertising, drug development and more. That has made Microsoft, the fourth-best Dow Jones stock of 2024, arguably the No. 1 AI stock today.
Merck Stock
Shares of Merck have leapt 19.1% higher so far this year. However, a tumble in the final week of June is set to take the drugmaker's Q2 returns into negative territory.
Merck stock's breakout attempt past 133.10 has fizzled. Shares bear a Composite Rating of 85. The EPS Rating is a dull 44 though its RS Rating is a solid-enough 81.
In April, Merck raised full-year earnings guidance after beating views for the first quarter. The company credited strong sales of its Keytruda cancer drug and Gardasil HPV vaccine for the beat.
It is now launching Winrevair, a major new drug to treat a rare, progressive and life-threatening lung disease called pulmonary arterial hypertension.
Best Dow Stocks Of Q2
Amazon stock, Microsoft stock and Walmart aren't the only Dow Jones stocks holding sizable Q2 gains.
Other Q2 Dow stock winners include Apple (AAPL), 3M (MMM), Amgen (AMGN) and Goldman Sachs (GS). Apple stock notched the biggest advance, up 24% over the quarter. Shares appear poised to end the quarter just beyond the buy range of a cup-base buy point, following a June 11 breakout.
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.
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