The Dow Jones Industrial Average (DJIA) just finished one of its best winning streaks since 1987. The index finished in the green for 13 straight days! Indeed, it was a historic rally for the value-heavy index, as it benefitted from the broadening out of the U.S. stock market’s gains.
Though it’s highly unlikely that the Dow will top its recent win streak this year, I do think the index is full of intriguing value options that may have more room to run as other sectors look to build off tech’s recent strength.
In this piece, we’ll have a look at three Dow stocks that I believe Canadian investors may wish to consider now that the loonie is hovering at around US$0.76. Indeed, the exchange rate is looking pretty solid relative to the greenback these days, thanks in part to Bank of Canada rate hikes.
Without further ado, let’s have a look at the following Dow names that I believe can continue to gain in the second half of 2023, and perhaps the first half of 2024.
Apple
If you did the prudent thing and trimmed Apple (NASDAQ: AAPL) stock at some point in the second half, you’re probably in awe over the name’s continued rise.
After a mild up day for AAPL stock on Monday, shares are now a tad shy of $197 per share. Impressively, the iPhone maker is now worth more than $3 trillion. And as shares look to test $200 (and beyond), I do think Apple stands out as one of the Dow stocks that investors should probably hang onto for the long haul rather than seek to trim after every upward run.
Looking ahead, the iPhone 15 and Apple Vision Pro could act as upside drivers on the stock. Even at more than 33 times trailing price-to-earnings, I believe Apple can keep beating estimates and powering its way higher. Undoubtedly, Apple is one of those truly wonderful businesses that’s worth flying south of the border for!
Walt Disney Company
Walt Disney (NYSE: DIS) stock has been one of the Dow’s biggest losers in recent years. Can you believe that if you had invested in the company five years ago, you’d actually have lost money? Over the past five years, shares are down around 22%. With media losing its way amid Hollywood writer and actor strikes, it seems like things can only get worse for the entertainment giant.
Fortunately, I view DIS stock as more of a value play than a Dow dog to forget about. On Monday, shares surged 3.2%. Despite the hot day, shares are still well off $197 and change highs. The stock’s off 55% and has struggled to bottom out. In any case, I like the assets, and if you’re willing to stick it out longer term, I’d not be afraid to buy the dip in a name that doesn’t really have a Canadian comparable.
Visa
Finally, we have credit card company Visa (NYSE: V), which I think makes for a terrific breakout play as the recession ends and consumer spending reignites! Payments may have cooled down of late, but it’s still a magnificent market with plenty of growth runway!
For now, the stock’s modestly priced (at least according to Visa standards) at 30.1 times trailing price-to-earnings.
With a fairly sizeable moat (billions of cards), I view Visa stock as one of the names you cannot ignore after a prolonged period of sluggish performance. It’s a Dow stock that’s realistically capable of breaking 2021 highs of around $249 and change.
