5 Dow Stocks Likely to Rise on Earnings

Dow stocks including Verizon and GE typically rise in the day after their third-quarter earnings reports.
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BOSTON (TheStreet) -- Some Dow stocks, such as Verizon (VZ) - Get Report and General Electic (GE) - Get Report, perform better than others after reporting third-quarter earnings results.

The following five Dow stocks have notched, on average, the biggest gains in the trading session after posting quarterly numbers in October and November over the past five years. Nothing is a sure bet, but history can be a guide for traders looking to make money on earnings results of blue-chip companies.

For instance, shares of

JPMorgan Chase

(JPM) - Get Report

and

Intel

(INTC) - Get Report

, among the first Dow companies to publish earnings every quarter, initially traded higher today but are now trading flat. Over the past five years, both stocks have an average gain of just 0.3% in the session immediately following their earnings releases.

Other Dow components, though, have a higher average gain on third-quarter results, and

TheStreet

has ranked the top five winners based on that percentage rise.

5.

Verizon

(VZ) - Get Report

Company Profile

: Verizon operates wireless and wireline networks in the U.S. Its Verizon Wireless joint venture with

Vodafone

(VOD) - Get Report

is the largest wireless network in the U.S. based on subscriber count.

Reporting Date

: Friday, Oct. 22 (before market opens)

Historical Price Performance

: Over the past five years, Verizon shares have returned an average of 1.54% on the day the telecommunications giant reports third-quarter results.

Analyst Consensus

: Verizon should report a third-quarter profit of 54 cents a share, according to a Thomson Reuters poll of 27 analysts. Revenue for the quarter should come in at $26.3 billion, a 3.7% decrease from a year earlier. Over the past month, four research firms have increased their EPS target for Verizon's third quarter, including Citigroup and Bank of America/Merrill Lynch.

4.

General Electric

(GE) - Get Report

Company Profile

: GE provides services ranging from aircraft engines, power generation, water processing and household appliances to medical imaging, business and consumer financing, media content and industrial products.

Reporting Date

: Friday, Oct. 15 (before market opens)

Historical Price Performance

: Over the past five years, GE shares have returned an average of 1.55% on the day the industrial behemoth reports third-quarter results.

Analyst Consensus

: GE should report a third-quarter profit of 27 cents a share, according to a Thomson Reuters poll of 13 analysts. Revenue should slip 0.5% from a year earlier to $37.6 billion, according to estimates. Three research firms, including Sanford C. Bernstein, have raised their EPS target for GE's third quarter over the past month.

3.

Travelers

(TRV) - Get Report

Company Profile

: Travelers provides commercial and personal property and casualty insurance products and services to businesses, government units, associations and individuals.

Reporting Date

: Thursday, Oct. 21 (before market opens)

Historical Price Performance

: Travelers shares have returned an average of 2% on the day the company reports third-quarter results, dating back to 2005 when the company was named St. Paul Travelers.

Analyst Consensus

: Travelers should report a third-quarter profit of $1.43 a share, according to a Thomson Reuters poll of 21 analysts. Estimates call for revenue of $5.4 billion, which would be an increase of 1.1% over the year-earlier quarter. Over the past month, seven research shops have raised their EPS target for Travelers' third quarter, including JPMorgan and Morgan Stanley.

2.

Wal-Mart

(WMT) - Get Report

Company Profile

: Wal-Mart is the world's largest retailer, operating Wal-Mart discount stores, supercenters, Neighborhood Markets and Sam's Club locations in the U.S.

Reporting Date

: Tuesday, Nov. 16 (before market opens)

Historical Price Performance

: Over the past five years, Wal-Mart shares have returned an average of 2.9% on the day the retail giant reports third-quarter results.

Analyst Consensus

: Wal-Mart should report a third-quarter profit of 90 cents a share, according to a Thomson Reuters poll of 23 analysts. Revenue should climb 3% to $102.4 billion from the same quarter a year earlier. Only one research firm, Goldman Sachs, has increased the EPS target for Wal-Mart's most recent quarter.

1.

Microsoft

(MSFT) - Get Report

Company Profile

: Microsoft is the creator of the Windows operating system for home and business computers. The company sells software products and services for different types of computing devices.

Reporting Date

: Thursday, Oct. 28 (after market closes)

Historical Price Performance

: Over the past five years, Microsoft shares have returned an average of 3.2% on the day the tech company reports third-quarter results.

Analyst Consensus

: Microsoft should report a third-quarter profit of 55 cents a share, according to a Thomson Reuters poll of 31 analysts. Revenue should jump 23% from a year earlier to $15.8 billion in the third quarter. On the downside, five research firms have dropped their EPS targets for Microsoft's recent quarter, including Citigroup and Goldman Sachs.

-- Written by Robert Holmes in Boston

.

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