The Dow Jones Industrial Average has rebounded after crashing to $36,640 in April as concerns about the trade war rose. It has jumped by over 15.5% to $42,310, and is hovering at the highest point since March 27.
The Dow and other stock market indices like the S&P 500 and Nasdaq 100 will likely continue doing well in the coming months. The top catalysts will be the potential Federal Reserve cuts and trade deals between the US and other countries, like those in Europe and those in Asia.
This article explores the top four Dow Jones stocks to buy and hold for the next bull run in Wall Street.
Boeing (BA)
Boeing stock price has been in the spotlight in the past few years as the company moved from one crisis to the next. Recently, however, there are signs that the company is on a recovery path, which explains why it has jumped by 15% this year.
These gains happened this week after Qatar announced a purchase agreement for 210 jets. Saudi Arabia and the United Arab Emirates (UAE) also announced large deals to buy these jets.
Boeing is also asking the Federal Aviation Administration (FAA) to let it increase its 737-Max production. With no major incidents recently, there is a likelihood that the agency will give it an approval.
The company also has a new management focused on lowering costs and boosting its production in a better way. Part of this process will come from its ongoing acquisition of Spirit, a company that manufactures its fuselages.
Therefore, there is a likelihood that the Boeing stock price will continue doing well in the coming months as investors bet that it will take market share from Airbus.
Microsoft (MSFT)
Microsoft is another blue-chip Dow Jones constituent stock to buy and hold. It is a technology juggernaut at the center of key macro shifts. First, it has become one of the biggest players in the artificial intelligence industry. Analysts believe that the company will benefit by providing both consumer and enterprise facing solutions.
Microsoft is also the second-biggest player in the cloud computing industry, a segment that has continued growing this year. The most recent results showed that the Intelligent Cloud segment made over $26.8 billion in revenue, up by 21% from the same period last year.
Further, Microsoft is a top company in the Software-as-a-Service (SaaS) industry. Its productivity and business processes generated $30 billion in revenue, up by 10% from the previous year.
Read more: Microsoft plans to lay off over 6,800 employees: report
American Express (AXP)
The American Express stock price has jumped to $300 from a low of $220 in April. This surge accelerated after the company published strong financial results, with its revenue rising by 7% to $16.96 billion and its net income jumping by 6%.
American Express’s business will likely continue doing well in the long term, especially now that it is becoming more popular among the youth. It expects that its revenue growth for the year will be between 8% and 10%.
Amex is also a good rewarder of investors as it spends over $5 billion a year in a combination of dividends and share buybacks.
Walmart (WMT)
Walmart is another top Dow Jones stock to buy and hold because of its strong market share in the retail industry. It is often seen as an all-weather company that does well in all market conditions.
In its earnings this week, the company said that its revenue rose by 2.5% as its e-commerce segment rose by 22%. Its operating income jumped to over $7.1 billion.
Walmart is a beloved retailer because of its large assortment of products that are often lower priced than other retailers. The company hinted that it will now hike prices because of Trump’s tariffs.
The other top Dow Jones stocks to buy are Goldman Sachs, NVIDIA. Salesforce and Procter & Gamble.
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