The Dow Jones Industrial Average (DJIA), introduced in 1896 by Charles Dow, is renowned for its blue-chip, large-cap stocks. But this year has been underwhelming for Dow stocks, disappointing investors who were used to more significant growth.
However, recent developments signal a change for the Dow. On November 24, the DJIA surged by 0.5%, an uplift of 184.74 points. This notable rise was underpinned by 23 of the 30 stocks in the index closing in the green. This positive momentum reflects a broader trend, with the Dow demonstrating a 6% rise in 2023 so far, hinting at a resilient comeback.
A recent Reuters poll projects the Dow to close 2024 near the 38,000 mark, an impressive 8% uptick from its current position. This indicates that the Dow is embarking on a sustained upward trajectory. These Dow stocks further reinforce this promising trend.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) has been a beacon of growth in the investment world. It has pushed the boundaries of innovation, particularly in AI, recently revealing around 100 new AI-focused initiatives. These include modernizing cloud infrastructure and incorporating technologies, like ChatGPT, into diverse platforms. Microsoft further advances its AI journey with the launch of its in-house AI chips, Azure Maia 100 and Cobalt 100.
Moreover, in its recent quarter, Microsoft reported a stellar $56.5 billion in revenue. This revenue surge, coupled with a 27% net income increase, was primarily fueled by the strong performance of Microsoft Cloud. Notably, the Intelligent Cloud segment also experienced a significant 19% revenue growth, highlighting the stock’s strength.
Microsoft’s shares have surged by almost 242% in the past five years, and analysts recommend a strong buy with a 7.41% potential upside. This remarkable performance highlights the company’s potential to become a top pick in numerous investment portfolios.
Visa (V)
Our next option in Dow stocks to buy is digital payments sector titan, Visa (NYSE:V). The company is innovating cross-border remittances by focusing on digitizing transactions to make them quicker, simpler and more cost-effective. This strategic move is a response to the increasing demand for efficient international digital money transfers.
Moreover, Visa’s tech advancements stem from a significant $3 billion investment in AI over the last decade. This has resulted in a cutting-edge platform with hundreds of AI models. These models, crucial to over 100 products like Visa’s CyberSource Decision Manager, played a key role in preventing around $27 billion in fraud in 2022.
Furthermore, in the fourth quarter, Visa reported a GAAP net income of $4.7 billion, an 18.8% YoY increase. This strong financial performance resulted in a 10.6% YoY surge in revenue, solidifying it as a robust player in the digital landscape.
Walmart (WMT)
Walmart (NYSE:WMT) has been consistently thriving, with its stock rising 11% year-to-date and 67% over the past five years. Walmart’s promise of lower prices than competitors continues to attract consumers seeking cost-effective solutions.
Moreover, Walmart is investing over $9 billion in the next two years to enhance the layouts and technology of over 1,400 U.S. stores. Walmart is embracing cutting-edge technologies like voice shopping in its app, augmented reality tools and GenAI.
This strategy is yielding results, with a recent quarter showing a 5.26% rise in revenue to $160.8 billion. The increase is fueled by higher sales and pickup and delivery services. These positives highlight the company’s solid standing in the dynamic retail market.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
