BOSTON (TheStreet) -- Those who claim you can't make money in blue-chip dividend stocks should take a look at the following 10 Dow components. They've at least doubled since the March 2009 low, which was two years ago this week. Although the mega-cap index has lagged the S&P 500 and Nasdaq since then, several companies have surged. Several may still outperform in 2011. Below, they are ordered by performance since the low, from great to best.
is a financial company, with retail-, commercial- and investment-banking units.
JPMorgan's stock has doubled since the March 2009 low. It is up 8.8% in 12 months and 15% in three. JPMorgan currently ranks as analysts' favorite Dow stock, based on aggregate ratings. Currently, 28, or 85%, of the analysts in coverage rate its stock "buy" and five rate it "hold." None rank it "sell."
forecasts a rise of 35% to $61.
predicts a gain of 11% to $50. The stock trades at a trailing earnings multiple of 12, a forward earnings multiple of 8.2 and a sales multiple of 1.5, 16%, 26% and 14% peer discounts. JPMorgan's adjusted fourth-quarter earnings surged 84% to $1.12, beating researchers' consensus estimate by 12%. The company's quarterly revenue grew 23%.
is an aerospace, defense and industrial company.
United Technologies' stock has more than doubled since the March 2009 low. It has gained 17% in 12 months and 3.8% in three. United currently ranks as analysts' third favorite Dow stock, with 74% of those in coverage ranking it a "buy."
values the stock at $98, suggesting 20% upside.
FBR Capital Markets
forecasts a modest rise to $83. United shares sell for a forward earnings multiple of 14 and a book value multiple of 3.5, 11% and 55% industry discounts. Yet, they're fairly valued based on cash flow and trailing earnings. United's fourth-quarter adjusted earnings rose 9.8% to $1.31, exceeding consensus by 1.3%. Sales expanded 5.4%.
builds commercial and military aircraft, satellites and defense systems.
Boeing's stock has soared 123% since the March low. It has risen 7% in 12 months and 3.5% in three. Boeing currently ranks as the thirteenth highest-rated Dow stock, based on analyst grades. Of researchers covering Boeing, 69% advise purchasing its shares.
Gleacher & Co.
offers a target of $100, implying 45% of upside. In contrast,
predicts a decline to $63. Boeing's stock trades at a trailing earnings multiple of 16, a forward earnings multiple of 13 and a sales multiple of 0.8, 12%, 13% and 38% peer discounts. It's expensive based on cash flow and book value. Boeing's adjusted fourth-quarter earnings tumbled 38% to $1.11, meeting consensus expectations.
is a conglomerate.
GE's stock has advanced 138% since the March low. It has gained 28% in 12 months and 22% in three. GE ranks as equity researchers' fifteenth favorite Dow stock. Of analysts covering GE, 62% recommend purchasing its stock.
has the highest target on Wall Street, at $25, consistent with a 22% rise.
, though ranking GE "overweight", predicts a modest rise to $21. GE's stock sells for a forward earnings multiple of 13 and a book value multiple of 1.8, 16% and 22% peer discounts. GE's adjusted fourth-quarter earnings increased 16% to 36 cents, beating consensus by 13%. Sales rose 3.1%, beating by 3.4%. GE's dividend is forecasted to rise.
is an entertainment company, with television and film studios and amusement parks.
Disney's stock is up 156% since the 2009 March low. It has risen 36% in 12 months and 16% in three. Disney is currently analysts' tenth favorite Dow stock. Of those covering it, 67% advocate purchasing its shares.
BMO Capital Markets
predicts that Disney's stock will rally 29% to $56.
, ranking Disney "neutral", expects its stock to fall to $42. Disney's stock commands a forward earnings multiple of 14, a book value multiple of 2.1, a sales multiple of 2.1 and a cash flow multiple of 12, 42%, 23%, 12% and 41% media peer-group discounts. Disney's fourth-quarter adjusted earnings climbed 45% to 68 cents, outperforming consensus by 5.3%.
is a materials company, selling aluminum, alumina and related products.
Alcoa's stock has gained 161% since the March low. It has rallied 23% in 12 months and 15% in three. Alcoa currently ranks as the fifth least-favorite Dow stock. Of researchers following Alcoa, nine, or 50%, advise purchasing its stock, seven recommend holding and two advocate selling.
offers the highest 12-month target, auguring a rise of 36% to $22. In contrast,
, ranking the stock "underperform", expects it to fall to $16. Alcoa sells for a forward earnings multiple of 11, a book value multiple of 1.2 and a cash flow multiple of 7.3, 73%, 65% and 58% industry discounts. Adjusted quarterly earnings beat analysts' consensus forecast by 12%.
is a chemicals company, with agriculture, materials and pharmaceutical units.
DuPont's stock has rocketed 184% since the March 2009 market low. It has returned 56% in 12 months and 9.4% in three. DuPont currently places as researchers' twelfth favorite Dow stock, receiving 10 "buy" calls, five "hold" recommendations and no "sell" ratings.
is bullish, expecting an advance of 22% to $65.
forecasts a more modest increase to $58, ranking DuPont "neutral." DuPont trades at a trailing earnings multiple of 16, a forward earnings multiple of 13, a sales multiple of 1.5 and a cash flow multiple of 11, 25%, 24%, 47% and 23% chemicals industry discounts. Adjusted quarterly earnings rose 14%, beating consensus.
Bank of America
is a financial company, with retail- and commercial-banking units.
Bank of America's stock has more than tripled since the 2009 stock-market low. It has fallen 16% in 12 months, but rallied 18% in three. Bank of America ranks as researchers nineteenth favorite Dow stock. Of analysts covering the equity, 60% rank it "buy."
is optimistic, predicting a gain of 73% to $24.
, on the other hand, expects the stock to fall to $13. Bank of America sells for a forward earnings multiple of 7.5, a book value multiple of 0.6, a sales multiple of 1.1 and a cash flow multiple of 1.7, 32%, 35%, 42% and 66% peer discounts. The bank swung to a quarterly profit of 30 cents, beating Wall Street's consensus.
is a credit-card company, competing with the likes of
American Express's stock has more than tripled since the 2009 low. It has risen 12% in 12 months, but fallen 4.6% in three. AmEx places as researchers' ninth least-favorite Dow stock. Of the analysts covering AmEx, 18, or 67%, rate its stock "buy", six rate it "hold" and three rank it "sell."
offers a target of $62, suggesting a 12-month rise of 44%.
forecasts a fall of 16% to $36. American Express, undervalued based on its 5.6 cash flow multiple, is fairly valued when considering forward earnings and book value. Fourth-quarter adjusted earnings jumped 59%, still missing consensus.
designs, manufactures and sells construction and mining equipment.
Caterpillar's stock has more than quadrupled since the March 2009 low. It has climbed 74% in 12 months and 14% in three. Caterpillar ranks as analysts' tenth least-favorite Dow stock. Of researchers following Cat, 13, or 59%, advise buying its shares and nine say to hold. None recommend selling.
offers the highest target on Wall Street, expecting a gain of 24% to $125.
Sterne, Agee & Leach
, ranking Cat "neutral", expects a marginal rise to $103. Cat trades at a forward earnings multiple of 12 and a cash flow multiple of 13, 26% and 19% industry discounts. The shares are expensive based on book value.
-- Written by Jake Lynch in Boston.
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