The best Dow Jones stocks of 2023 include Apple and Microsoft

Salesforce.com (CRM) Apple (AAPL), Microsoft (MSFT) and intel (INTC) rose sharply in the second quarter and has been among the top five Dow Jones stocks of 2023 so far. American Express (AXP) has also made it.




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Tech stocks have been the engine of the stock market rally this year. And despite higher interest rates, positive economic data continues to ease recession fears.

Salesforce stock, the #1 on the Dow Jones, and Microsoft at #3 will benefit from the boom in artificial intelligence (AI) stocks.

Apple stock, Microsoft, and Salesforce each have a composite rating above 90. The IBD Composite Rating, which ranges from 1 (worst) to 99 (best), provides an instant view of a stock based on a combination of fundamental and technical key figures.

Salesforce stock

Salesforce shares are up 59.3.7% year-to-date, making it the best-performing Dow Jones stock so far this year. In the second quarter, CRM stock rose 6.8%.

Salesforce stock rallied via alternative entry points at 194.01 and 200.10 in March and early May respectively.

This AI game has a composite rating of 96. Its EPS rating is 98. Salesforce stock is also in the IBD 50 list of top growth stocks.

On June 12, Salesforce announced AI Cloud to offer generative AI to its enterprise customers.

Salesforce's existing Einstein AI software cloud platform uses artificial intelligence to help salespeople predict which deals are most likely to close.

Apple stock

Shares of the iPhone maker are up 49.3% so far this year. That includes a 16.7% increase in the second quarter.

On June 30, AAPL stock hit a record high of 194.48, surpassing the $3 trillion market cap for the first time. It continues to hold well above a buy point of 157.38.

Apple stock has a composite rating of 93 and an EPS rating of 80.

According to analysts, the tech giant has emerged as a leading software technology company thanks to a robust app ecosystem.

In addition, the upcoming iPhone 15 is likely to generate strong demand as many buyers have been holding on to their phones for years.

Microsoft stock

Microsoft shares are up 42% so far this year. That includes an 18.2% gain in the second quarter.

Microsoft stock has a composite rating of 97. Its EPS rating is 91.

Startup OpenAI's ChatGPT is one of many “generative AI” technologies that could disrupt a variety of industries by creating text, images, videos, and programming code themselves.

Microsoft continues to capitalize on its strategic involvement in OpenAI.

Generative AI technology is already finding applications in marketing, advertising, drug development, video games, customer care, digital art and more.

Intel stock

Intel's shares are up 26.5% so far this year. This includes growth of 2.1% in the second quarter.

Unlike the other stocks on this list, INTC stock is far from all-time highs.

Intel stock offers a buy point of 33.84 off a bottom, MarketSmith charts show.

The company's turnaround plan hinges on becoming a similar chip foundry Taiwan semiconductor manufacturing (IBD). Investors continue to review the strategy.

Though the company lags behind its peers, Intel has a “significant AI opportunity,” analysts at Morgan Stanley said in June. They added that Habana Labs/Gaudi's specialty silicon could lead to a “significant” sales turnaround next year.

American Express stock

American Express shares are up 17.9% so far this year. The AXP share consolidated over long stretches of the second quarter and recorded growth of 5.6%.

According to IBD MarketSmith, American Express stock has a cup and handle buy point of 177.04. Stocks are arguably punishable if they break a downtrend under control. The pattern formed around the 50-day moving average.

The payment stock has a composite rating of 85 and an EPS rating of 58.

American Express saw a huge increase in consumer travel and entertainment spending after the pandemic lockdowns were eased. Analysts warn that spending is now slowing, negatively impacting credit card issuers.

With Dow giant Goldman Sachs (GS) is in talks with American Express to acquire its Apple credit card, bank account and other ventures, according to multiple reports late Friday.

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