This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

13 Buy-Rated Dow Stocks Now Include Microsoft and J&J

NEW YORK (TheStreet) -- As investors consider investment strategies for 2014, I favor allocations to buy-rated stocks in the Dow Industrial Average. In my judgment buy-rated Dow stocks should be considered a part of a portfolio rebalancing strategy where investors take huge profits on stocks on positions set a year ago or back to the lows of March 2009. My concept of rebalancing locks in gains and reduces total dollars invested back to the dollars in the market at the end of 2012.

On Dec. 6 I wrote, Cisco and Intel Are Buy-Rated Dow Stocks to Own and there were 14 buy rated Dow components. Today there are 13 but there are five name changes. General Electric (GE), IBM (IBM) and Intel (INTC) are no longer buy-rated and Johnson & Johnson (JNJ - Get Report) and Microsoft (MSFT - Get Report) have recently been upgraded to buy from hold.

Here are my buy-and-trade profiles for the 12 buy-rated Dow stocks:

Cisco Systems (CSCO)($22.31 vs. $20.91 on Dec. 5 up 6.7%) traded as low as $20.22 on Dec. 13 and moved above its 50-day simple moving average at $21.84 on Dec. 27 and is below its 200-day SMA at $23.08. The stock is 12.3% overvalued with a gain of 10% over the last 12 months with a 12 month trailing earnings-per-share ratio at 11.9. Cisco has a positive weekly chart profile with its five-week modified moving average at $21.87 after testing its 200-week SMA at $20.23 at the Dec. 13 low. My weekly value level is $19.35 with a semiannual pivot at $21.96 and annual risky levels at $23.38 and $26.76. Quarter and monthly risky levels are between the annual levels at $24.27 and $25.62.

Must Read: Three Consumer Sector ETFs for Some Safety

General Electric ($27.29 vs. $26.45 on Dec. 5 up 3.2%) has recently been downgraded to hold from buy so buy-and-trade investors should shift allocations in General Electric into another buy-rated Dow stock.

Home Depot (HD)($81.50 vs. $78.54 on Dec 5 up 3.8%) traded to a new all-time intra-day high at $82.57 on Jan. 2 with the stock above its 50-day and 200-day SMAs at $79.10 and $76.70. The stock is 10.7% overvalued with a gain of 29.7% over the last 12 months with an elevated 12 month trailing P/E ratio at 21.9. Home Depot has a positive but overbought weekly chart profile with its five-week MMA at $80.18 in a parabolic formation. My semiannual value level is $75.25 with a semiannual pivot at $81.82 and monthly risky level at $84.15.

IBM ($189.71 vs $176.08 on Dec. 5 up 7.7%) has recently been downgraded to hold from buy so buy-and-trade investors should shift allocations in IBM into another buy-rated Dow stock.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
JNJ $112.08 -0.36%
MSFT $49.87 -0.06%
AAPL $93.74 -1.15%
FB $117.58 0.73%
GOOG $693.01 0.29%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs