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James Li
James Li
Articles (1445)  | Author's Website |

4 Dow Jones Stocks Outperforming the S&P 500

Stocks to consider as Dow Jones eclipses historic 30,000 milestone

In light of the Dow Jones Industrial Average closing above 30,000 for the first time in history, four Dow Jones stocks with high financial strength, profitability and three-month total returns are Honeywell International Inc. (NYSE:HON), Salesforce.com Inc. (NYSE:CRM), Nike Inc. (NYSE:NKE) and Walmart Inc. (NYSE:WMT) according to the All-in-One Screener, a Premium feature of GuruFocus.

The Dow Jones Industrial Average, one of several key U.S. market indexes, contains 30 component companies in various industries. On Tuesday, the index closed at 30,046.24, up 454.97 points from Monday's close of 29,591.27.


U.S. stock indexes rallied on the back of several positive news regarding potential Covid-19 vaccines and hope for a strong economic recovery in 2021. CNBC added other key market drivers, including the General Services Administration approving the beginning of the presidential transition and President-elect Joe Biden nominating former Federal Reserve Chair Janet Yellen as Secretary of the Treasury.

On the heels of the market rally, several Dow stocks have outperformed the Standard & Poor's 500 Index benchmark over the past three months. GuruFocus' All-in-One Screener listed four stocks that have a financial strength rank of at least six and have outperformed the benchmark by more than 10% over the three-month period.

Honeywell and Salesforce.com

Shares of Honeywell traded around $207.31, outperforming the S&P 500 by over 28.18% over the past three months. Likewise, shares of Salesforce.com traded around $260.34, outperforming the S&P 500 by over 21.85% during the same period.


S&P Dow Jones Indices said on Aug. 24 that Honeywell and Salesforce.com entered the 30-stock index effective Aug. 31 to help "diversify the index" and "add new types of businesses that better reflect the American economy." The changes took place following Apple Inc.'s (NASDAQ:AAPL) four-for-one stock split, which sank the weighting of technology sector within the Dow from approximately 27% to 20% according to Howard Silverblatt, senior index analyst at Dow Jones Indices. Adding Salesforce.com increased the technology weight to 23%, offsetting the impact.


GuruFocus ranks Honeywell's profitability 7 out of 10: Even though the Charlotte-based industrial products company's three-year revenue growth rate of -0.3% underperforms over 68% of global competitors, Honeywell's profit margins are outperforming over 90% of global industrial companies.


GuruFocus ranks Salesforce.com's financial strength 7 out of 10, driven by a high Piotroski F-score of 7 and a strong Altman Z-score of 7.81 yet weighed down by low interest coverage ratios.


Gurus with large holdings in Salesforce.com include Ken Fisher (Trades, Portfolio), Spiros Segalas (Trades, Portfolio) and Pioneer Investments (Trades, Portfolio).



Shares of Nike traded around $134.70, outperforming the S&P 500 by approximately 20.14% over the past three months.


GuruFocus ranks the Beaverton, Oregon-based sports apparel giant's profitability 8 out of 10 on the back of net margins and returns outperforming over 82% of global competitors.



Shares of Walmart traded around $151.36, outperforming the S&P 500 by approximately 12.36% over the past three months.


GuruFocus ranks the Bentonville, Arkansas-based defensive retailer's profitability 7 out of 10 on the back of a high Piotroski F-score of 7 and profit margins and returns outperforming over 70% of global competitors.


Disclosure: Long Apple.

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About the author:

James Li
I am an editorial researcher at GuruFocus. I have a Master's in Finance from SMU, and I enjoy writing reports on financial trends and investor portfolios. Follow me on Twitter at @JamesLiGuru!

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