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Warren Buffett's American Express Among Top Dow Stocks as of July

Stocks with the highest year-to-date return as Dow closed above 35,000 last week

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James Li
Jul 26, 2021

Summary

  • The Dow Jones Industrial Average closed last week above 35,000 for the first time in history.
  • Buffett’s favorite credit card company leads the pack with over 44% year-to-date gain.
  • Other top-performing stocks include Goldman Sachs and Microsoft.
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According to the All-in-One Screener, a Premium feature of GuruFocus, five stocks among the Dow Jones Industrial Average constituents gained more than 25% in the year to date, including

Warren Buffett (Trades, Portfolio)’s favorite credit card company, American Express Co. (AXP, Financial). Other top-performing Dow stocks include Goldman Sachs Group Inc. (GS, Financial), Microsoft Corp. (MSFT, Financial), The Home Depot Inc. (HD, Financial) and Cisco Systems Inc. (CSCO, Financial).

Dow climbs slightly following historic 35,000 close

On Monday, the Dow closed at 35,144.31, up 82.76 points from last Friday’s close of 35,061.55 and up 4,920.42 points from the Jan. 4 level of 30,223.89. The 30-stock index closed last week above 35,000 for the first time in history: A CBS News article added that the Dow surged on the back of “upbeat corporate profits that assuaged concerns” about the latest Covid-19 surges upending the economy’s recovery.

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According to All-in-One Screener results, a Premium feature, five Dow stocks gained more than 25% in the year to date, contributing most of the Dow’s rally.

American Express

Shares of American Express (

AXP, Financial), the third-largest holding in Berkshire Hathaway’s (BRK.A, Financial)(BRK.B, Financial) equity portfolio, traded around $172.90, up approximately 44.30% in the year to date. The stock is significantly overvalued based on Monday’s price-to-GF Value ratio of 1.53.

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Shares of the New York-based credit card company surged on Friday following the release of second-quarter results that topped consensus estimates. American Express reported net income of $2.3 billion, or $2.80 in earnings per share, compared with net income of $257 million, or 29 cents per share in the prior-year quarter. Revenue of $10.24 billion topped the Refinitiv consensus estimate of $9.58 billion.

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GuruFocus ranks the company’s profitability 6 out of 10: Even though net margins outperform just over half of global competitors, American Express has a high Piotroski F-score of 7 and a five-star business predictability rank.

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Berkshire owns 151,610,700 shares of American Express as of the March-quarter filing. Shares occupy 7.93% of the insurance conglomerate’s equity portfolio.

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Other gurus with large holdings in American Express include

Ken Fisher (Trades, Portfolio)’s Fisher Investments and Dodge & Cox.

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Goldman Sachs

Shares of Goldman Sachs (

GS, Financial) traded around $374.88, up approximately 42.79% in the year to date. The stock is modestly overvalued based on Monday’s price-to-GF Value ratio of 1.12.

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GuruFocus ranks the New York-based investment bank’s profitability 6 out of 10: Even though returns on assets underperform more than half of global competitors, positive investing signs include a high Piotroski F-score of 8 and a 3.5-star business predictability rank.

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Microsoft

Shares of Microsoft (

MSFT, Financial) traded around $288.67, up approximately 30.74% in the year to date. The stock is significantly overvalued based on Monday’s price-to-GF Value ratio of 1.44.

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GuruFocus ranks the Redmond, Washington-based software giant’s profitability 8 out of 10 on several positive signs, which include a high Piotroski F-score of 8 and an operating margin that has increased approximately 4.3% per year on average over the past five years and is outperforming more than 97% of global competitors.

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According to the Aggregated Portfolio of Gurus, a Premium feature, Microsoft is one of the most-broadly held guru stocks with 59 gurus owning shares. Gurus with large holdings in Microsoft include Fisher, Pioneer Investments (Trades, Portfolio) and

PRIMECAP Management (Trades, Portfolio).

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The Home Depot

Shares of The Home Depot (

HD, Financial) traded around $330.20, up approximately 26.55% in the year to date. The stock is fairly valued based on Monday’s price-to-GF Value ratio of 1.10.

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GuruFocus ranks the Atlanta-based home furnishings retailer’s profitability 9 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7, a five-star business predictability rank and an operating margin that has increased approximately 0.7% per year on average over the past five years and is outperforming more than 89% of global competitors.

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Cisco

Shares of Cisco (

CSCO, Financial) traded around $55.53, up approximately 25.88% in the year to date. The stock is modestly overvalued based on Monday’s price-to-GF Value ratio of 1.13.

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GuruFocus ranks the San Jose, California-based networking hardware company’s profitability 9 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7, a five-star business predictability rank and an operating margin that has increased approximately 3.7% per year on average over the past five years and is outperforming more than 95% of global competitors.

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Disclosures

I am/we are Long CSCO
Rating:
4 / 5 (1 votes)

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