Boeing stock leads 5 Dow Jones giants near buy points

Five members of the Dow Jones Industrial Average top this week's list of stocks to watch near buy points. Although each of the stocks is listed on the Dow, each is from a different industry. Boeing stock at risk as air travel recovers JPMorgan Chase (JPM) is gaining ground as the banking sector shows signs of stabilization. Retail and fast food giants Walmart (WMT) and MC Donalds (MCD) are on the list, along with computer networks and software vendors Cisco systems (CSCO).


Boeing stock

Aerospace and defense giant Boeing reported narrower losses and rising revenue for the past two quarters. The company's commercial aircraft division posted solid revenue gains as travel demand and volume returned to pre-pandemic levels. And analysts don't expect recent delays in production of the 737 Max and 787 Dreamliner will have a major impact on Boeing's delivery schedule, JPMorgan wrote in a research note on Wednesday.

BA shares were added to SwingTrader on Thursday. Boeing is actionable given its near-term levels and trendline. Shares are trading just below a buy point of 221.33 on a flat basis dating back almost four months after a strong uptrend that started in November.

Boeing stock has a composite rating of 86 out of a maximum of 99. The composite rating combines various technical indicators into one easy-to-read score. The relative strength line is below the highs from the start of the year and BA stock has an RS rating of 92 out of 99. However, the string of quarterly losses leaves Boeing stock with a paltry EPS rating of 59.

Boeing stock is up 14% year-to-date.

JPMorgan stock

JPMorgan Chase is doing significantly better than most banks after the series of bankruptcies in March. The New York-based banking giant bailed out First Republic Bank in early May and the sector appears to have stabilized in recent weeks. However, numerous risks remain for the sector and the full impact of the bank failures is still unclear.

According to IBD Stock Checkup, JPMorgan has more than $3.7 trillion in assets and heads the Banks-Money Center Group.

JPM stock is trending to a flat base buy point of 143.37. The current pattern could be seen as a starting point for a consolidation four months ago.

JPMorgan has a near-perfect composite rating of 96. The bank's earnings and earnings have increased over the past three quarters, earning it an EPS rating of 92. JPMorgan has a rating of 80 RS.

JPM stock is up 5.15% so far this year.

Cisco stock

San Jose, California-based Cisco plans to increase revenue by shifting its core business from selling network switches and routers to software and services through acquisitions. The company's revenue growth accelerated in the last three quarters and earnings gains rose in the last two quarters.

A few other networking stocks are showing more robust growth, including Arista Networks (ANET) and Extreme networks (EXTR).

Cisco ranks fourth in the computer networking group led by Extreme Networks.

CSCO stock is trading on a cup basis with a buy point of 52.56 on the daily chart. A handle is being worked on that could offer an entry at 50.58 after Monday. On the weekly chart, Cisco is already capturing the 50.58 buy point. But the recent Cisco base follows two flat underlyings that have faltered, and these followed a long downtrend.

CSCO stock is trading at its 10-day moving average but is holding above its other technical lines.

Cisco stock has a composite rating of 80 and an EPS rating of 82. CSCO stock has an RS rating of 69 as it outperforms about two-thirds of the stocks on the market.

CSCO stock is up 4.2% in 2023.

McDonald's stock

McDonald's, the world's largest restaurant chain by number of locations, reported an adjusted profit jump of 15% in its first-quarter earnings report in April. Revenue rose 4.1%, beating estimates. This ended a series of quarterly declines. Traffic increased despite higher menu prices, and comparable sales rose double-digits over the past two quarters.

Following the results, BMO Capital raised its price target on MCD stock on April 26, noting that McDonald's should be able to maintain its strong momentum and continue to gain market share, especially in a weaker consumer environment. BMO Capital increased its price target from 300 to 325.

MCD stock is in a buy zone from its previous buy point of 281.67, but is trading below its 50-day moving average and just below its 21-day exponential line.

It formed another flat base with a buy point of 298.86 at Friday's close. A sharp rise above the 50-day moving average at 289.65 would also break its trendline, providing two reasons for an early entry.

McDonald's stock has a composite rating of 81 and an EPS rating of 86 after two quarters of double-digit earnings growth. Its line of relative strength is below recent highs from mid-May and is rated at RS 80.

MCD stock is up 8.8% year-to-date.

Walmart stock

Retail results have been mixed this earnings season, with many companies warning of a short-term sales slump as macroeconomic conditions and inflation weigh on consumer spending. But Walmart's earnings have accelerated over the past three quarters, benefiting from the trade-down mentality as customers seek cost-cutting. Walmart reported strong comparable store sales growth and market share gains in its U.S. grocery sales, including among higher-income households, in its Q1 report. Following the results, the company raised its full-year earnings guidance to 20 cents a share from 15 cents a share.

Walmart ranks second in the group of large retail discount chains, just behind Costco (COSTS).

WMT stock is in the buy zone from a double bottom buy point of 148.34 and bounced off its 50-day moving average last week. Investors may also consider 154.35 as an alternative handle entry as shares approach the buy point for a cup-with-handle basis on the MarketSmith weekly chart.

Walmart has a Strong Composite Rating of 85. Stocks have an EPS rating of 88 and an RS rating of 82.

WMT stock is up 8% so far this year.

You can follow Harrison Miller on Twitter for more stock news and updates @IBD_Harrison.


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