In this piece, we will take a look at ten best performing dow stocks in 2024.
The Dow Jones Industrial Average is one of the most closely watched stock indices globally, often considered a barometer of the overall health and trajectory of the American economy. As a price-weighted index, it is composed of 30 blue-chip companies from various sectors, excluding transportation and utilities. The Dow’s inclusion of companies from diverse industries such as technology, healthcare, finance, and consumer goods makes it a valuable indicator of market trends. Created in 1896 by Charles Dow, the Dow Jones Industrial Average has stood the test of time and, alongside the NASDAQ 100 and the S&P 500, remains one of the most recognized and influential stock market indices in the world.
The Dow’s journey over the past century has been marked by numerous highs and lows, often reflecting the broader economic conditions. For instance, the index experienced some of its worst single-day losses during the 2008 financial crisis. On September 29, 2008, the Dow plunged by 777.68 points, which was its largest single-day point drop at the time. The financial crisis, triggered by the collapse of Lehman Brothers and a series of banking failures, led to panic selling across global markets. That year, the Dow lost nearly 34% of its value, marking one of its worst annual performances. On the flip side, some of the best years in the Dow’s history include 1915, when it rose by a staggering 81.66%, and 1933, when it registered an annual gain of 63.74% amid a recovery from the Great Depression.
Fast forward to 2024, the Dow Jones Industrial Average has continued its volatile yet upward trajectory. As of September 20, 2024, the Dow closed at a new record high of 42,063.36 points, inching up by 38.17 points or 0.09% for the day. This milestone was reached after a period of substantial gains following the Federal Reserve’s decision to ease interest rates—the first such move in four years. The easing of monetary policy has provided a boost to the market, with investor sentiment improving and confidence in the resilience of the American economy strengthening.
Despite some mid-week volatility in the broader market, the Dow is expected to end September on a positive note. This rally was notable, considering the uncertainty surrounding the upcoming U.S. presidential elections, which has led many investors to take a cautious stance and refrain from making significant commitments until the political landscape becomes clearer. Tom Lee, co-founder and head of research at Fundstrat Global Advisors, highlighted this hesitancy during an appearance on CNBC’s “Closing Bell,” noting that “a lot of investors don’t want to commit capital until after Election Day. I don’t think it matters who wins; they just want to get that event behind them.”
Despite these uncertainties, the Dow has shown remarkable resilience, tracking to end the month of September higher. The 30-stock index has hit several fresh all-time highs throughout the year, demonstrating robust performance across key sectors. In fact, as of September 25, 2024, the Dow had reached a 52-week high of 42,299.64 points, representing a year-to-date (YTD) gain of 11.21% and a one-year change of 23.25%. These figures underscore the strength of the index and the performance of its constituent companies.
The success of the Dow in 2024 can be attributed to a range of factors. For one, leading technology and consumer goods companies, which form a significant part of the index, have continued to post strong earnings amid solid consumer demand and operational efficiencies. Moreover, the financial sector has also benefitted from the recent shifts in monetary policy, with lower interest rates driving increased borrowing and investment activities. Additionally, healthcare companies have maintained growth trajectories, as innovation and demand for services remain high in the post-pandemic era.
The top-performing stocks within the Dow Jones Industrial Average in 2024 have played a pivotal role in driving the index to record highs. These companies, known for their strong fundamentals, market leadership, and robust financial health, have outpaced broader market expectations. Investors seeking exposure to blue-chip companies with a track record of stability and consistent returns have found the Dow to be an attractive option.
In this article, we will delve into the 10 best-performing Dow stocks in 2024. From established technology giants to consumer staples that continue to dominate their respective industries, these stocks have led the charge in pushing the Dow Jones Industrial Average to new heights.
A close up of a laptop displaying a detailed graph of the Dow Jones Internet Commerce Index.
Our Methodology
For this article, we utilized a stock screener to identify DJIA index stocks that have shown significant gains year-to-date as of September 25, 2024. We arranged these stocks in ascending order based on their performance. Additionally, we examined the hedge fund sentiment surrounding these stocks, noting the number of hedge fund holders for each as of the end of Q2 2024.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10. The Coca-Cola Company (NYSE:KO)
Year to date Share Price Gain: 21.25%
Number of Hedge Fund Holders: 68
The Coca-Cola Company (NYSE:KO) continues to exhibit robust fundamentals, establishing itself as a top-performing stock in the Dow with a year-to-date share price gain of 21.25%. In Q2 2024, the company reported an earnings per share (EPS) of $0.84, exceeding expectations of $0.806. This performance highlights the effectiveness of The Coca-Cola Company (NYSE:KO) all-weather strategy, which has enabled the company to navigate varying market dynamics while driving consistent growth.
In the second quarter, The Coca-Cola Company (NYSE:KO) achieved an impressive organic revenue growth of 15%, underpinned by a 9% increase in price/mix growth and a 2% unit case growth. Notably, concentrate sales outpaced volume growth by four percentage points, showcasing effective inventory management amid supply chain challenges. Furthermore, comparable gross margins rose by approximately 200 basis points, reflecting underlying operational efficiencies despite 10% currency headwinds.
The Coca-Cola Company (NYSE:KO) strategic investments in high-growth markets, such as Asia Pacific and Latin America, have resulted in double-digit volume growth, particularly in its sparkling beverage segment. Products like Coca-Cola Zero Sugar achieved over 20% volume growth, further solidifying the brand’s appeal. With 68 hedge fund holders as of Q2 2024, compared to 62 in the previous quarter, investor confidence in The Coca-Cola Company (NYSE:KO) is clearly on the rise.
The company’s free cash flow of approximately $3.3 billion demonstrates solid cash generation capabilities, even as it invests in growth initiatives. Its commitment to a fit-for-purpose balance sheet, with a net debt leverage ratio of 1.5 times EBITDA, indicates a strong financial position to support ongoing capital allocation strategies, including dividends and expansion efforts.
The Coca-Cola Company (NYSE:KO) ability to innovate, highlighted by partnerships with leading brands such as Marvel, has also strengthened its market presence. The company is poised to capture further opportunities, as indicated by its revised 2024 guidance for organic revenue growth of 9% to 10% and comparable earnings per share growth of 13% to 15%. Overall, The Coca-Cola Company (NYSE:KO) strong operational metrics, strategic growth initiatives, and robust financial health underscore its potential for sustained performance, making it a compelling investment in 2024.
09. JPMorgan Chase & Co. (NYSE:JPM)
Year to date Share Price Gain: 23.57%
Number of Hedge Fund Holders: 111
JPMorgan Chase & Co. (NYSE:JPM) remains a strong contender in the financial sector, showcasing impressive fundamentals despite a slight earnings miss in Q2 2024. The firm reported a net income of $18.1 billion, translating to an EPS of $6.12 on revenue of $51 billion. Notably, excluding non-recurring items, the adjusted EPS stood at $4.40, demonstrating a resilient performance amid challenging economic conditions. Year-to-date, the stock has achieved a remarkable share price gain of 23.57%, underscoring its robust market position and investor confidence.
The bank’s revenue growth was fueled by a notable 20% year-on-year increase, driven largely by its Commercial and Investment Banking (CIB) division, which saw a remarkable 50% surge in investment banking fees. This reflects JPMorgan Chase & Co. (NYSE:JPM) ability to capture significant market share and benefit from favorable market conditions. Furthermore, the net interest income (NII) rose to $43.1 billion, marking a 9% increase when adjusted for exceptional items. The bank’s strong performance in asset management, with long-term net inflows of $52 billion and a robust asset under management (AUM) of $3.7 trillion, highlights its competitive edge in wealth management.
JPMorgan Chase & Co. (NYSE:JPM) commitment to capital discipline is evidenced by a CET1 ratio of 15.3%, which positions it favorably against regulatory requirements. The company has announced a dividend increase to $1.25 per share, reflecting its strong cash flow generation and commitment to returning value to shareholders. Additionally, as of Q2 2024, the number of hedge fund holders stands at 111, a slight decrease from 112 in the previous quarter, indicating sustained institutional interest in the stock.
Despite challenges such as deposit margin compression and increased credit costs, JPMorgan Chase & Co. (NYSE:JPM) continues to demonstrate operational strength and market adaptability. With a well-diversified business model, strategic acquisitions, and a focus on innovation, JPMorgan Chase & Co. (NYSE:JPM) is well-positioned for sustained growth, making it one of the best-performing Dow stocks to watch in 2024.