The Dow Jones Industrial Average remains at record highs in the second week of August, as the current stock market rally continues. The best Dow Jones stocks to buy and watch in August 2021 are Apple (AAPL), Boeing (BA), Goldman Sachs (GS), Microsoft (MSFT) and Nike (NKE).
There are clear winners — and losers — in the eight month of 2021. The top three performing Dow Jones stocks through Aug. 6 were Goldman Sachs, American Express (AXP) and Microsoft with advances of 50.9%, 41.7% and 30.1%, respectively.
Amid the current stock market rally, the tech-heavy Nasdaq ended July up 13.9%. The S&P 500 was up 17%, while the DJIA was up 14.1% through July 30.
What Is The Dow Jones Industrial Average?
Founded in 1896 with 12 stocks, the Dow Jones Industrial Average is one of the oldest stock market indexes. There are 30 Dow Jones stocks designed to serve as a bellwether for the general U.S. stock market. Other major stock indexes include the technology-heavy Nasdaq composite and the S&P 500 index — an index of the 500 largest companies in the United States.
Best Dow Jones Stocks To Buy And Watch
Source: IBD Data As Of July 30, 2021
Amid the current stock market rally — according to the IBD Big Picture — investors should focus on buying top stocks breaking out past correct buy points.
Focus on stocks that show strong relative strength during the recent stock market strength. They could be some of market's leaders if the Dow Jones Industrial Average is able to hit more record highs.
Potential Dow Jones stocks to buy and watch in August 2021 that are in or near buy zones include Apple, Boeing, Goldman Sachs, Microsoft and Nike.
Among the top Dow Jones stocks, Apple sold off as much as 1.5% before reversing slightly higher Monday. Apple stock is in a new buy area above a 148 trend-line buy point. The stock hit an all-time high on July 15 at 150.
According to the IBD Stock Checkup, Apple stock shows a 92 out of a best-possible 99 IBD Composite Rating. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths.
Airplane maker Boeing is back below its 50-day line, according to IBD MarketSmith chart analysis. Shares are about 15% off their 52-week high.
Boeing stock moved down 2.4% Monday. The company reported its first quarterly profit since 2019 on July 28, earning 40 cents per share on revenue of $17 billion.
Disney stock lost 1.6% Monday, as it continues to hold above its 50-day moving average. Shares are trying to break out above an early entry at 186.39.
Late Thursday, Disney beat Q3 estimates. The company earned 80 cents per share on revenue of $17.02 billion. Disney+ subscriptions of 116 million beat FactSet views for 115.2 million. ESPN+ had 14.9 million, and Hulu had 42.8 million.
Goldman Sachs Stock
Goldman Sachs stock is trying to break out past a 393.36 buy point in a flat base and is in buy range, according to IBD MarketSmith chart analysis. The 5% buy zone goes up to 413.03.
Shares lost 1.05% Monday.
Software giant Microsoft moved down 0.1% Monday. Shares of the Dow Jones leader are out of buy range above a new cup base's 263.29 buy point.
Microsoft is an IBD Leaderboard stock. Per Leaderboard commentary, "Microsoft has passed its buy point from a new cup, and is now mildly above the buy zone. The relative strength line is ascending again, hitting new highs and backing the stock's advance."
Nike blew away fiscal fourth-quarter earnings estimates on June 24. The company reported EPS of 93 cents on revenue of $12.3 billion, much higher than analyst estimates.
The stock moved down 0.1% Monday, and remains extended past a consolidation's 148.05 buy point, according to IBD MarketSmith chart analysis.
Tip: Before making any investment decisions, be sure to check current market conditions, and use IBD Stock Checkup to see if your stock gets passing ratings for the most important fundamental and technical criteria. To get ongoing chart analysis, and alerts to buy and sell signals, check out the unique features, stock lists and chart annotations at MarketSmith, Leaderboard and SwingTrader.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on Dow Jones stocks and the stock market.
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