There are clear winners — and losers — heading into the final month of 2020. The top three performing Dow Jones stocks through Nov. 30 were Apple (AAPL), recently-added Salesforce.com (CRM) and Microsoft (MSFT) with gains of 62.2%, 51.1% and 35.7%, respectively.
Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 38.3% for the year through Thursday’s close. The S&P 500 is up 13.5%, while the DJIA is up 5.1% year to date, through the Dec. 10 close.
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
|Company Name||Symbol||Closing Price||2020 YTD Performance|
Source: IBD Data As Of Nov. 30, 2020
Amid the current stock market rally— according to the IBD Big Picture — investors should continue to use the stock market’s strength to buy breakouts. Start slowly with new purchases and see how they perform. If they work, then add more exposure. But if breakouts start to fail, then you can back away.
Potential Dow Jones stocks to buy and watch in December that are in or near buy zones include Apple, Microsoft and Walmart.
Dow Jones stock Apple broke out above an aggressive entry at 122.09 on Dec. 1, according to MarketSmith chart analysis. Shares moved down 1.1% Friday and are just below the early entry.
Meanwhile, shares are approaching another aggressive entry exists at 125.49 while the conventional buy point, for now, is 138.08.
The blue-chip giant is the No. 1-performing Dow Jones stock for 2020, with a 66.7% advance through Friday.
According to the IBD Stock Checkup, Apple stock shows an 86 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.
Apple stock is on IBD’s Leaderboard.
Software giant Microsoft traded up 1.1% Friday, snapping a two-day slide. Shares are just below their key 10-week line. The stock is approaching a proper buy point at 228.22.
Microsoft is also an IBD Leaderboard stock.
Dow Jones leader Walmart is trading just below a 151.43 buy point in a flat base, according to MarketSmith chart analysis. The 5% buy zone goes up to 159.00.
Shares fell 0.1% Friday.
The discount retailer is the No. 5-performing stock on the Dow Jones Industrial Average, advancing 23.7% year to date through Friday’s close.
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.
YOU MAY ALSO LIKE: