In this article, we discuss Dow 30 stocks ranked in accordance with the hedge fund bullishness index. If you want to skip our detailed discussion about the stock market performance, head directly to Top 10 Dow Stocks: Ranked By Hedge Fund Bullishness Index.
Dow 30 is a stock index that takes into consideration the performance for 30 large-scale public companies. For many investors and economists, Dow 30 reflects on the performance of the United States economy.
Over the past year, economists were skeptical about the US economy in 2023. In 2022, the consumer price index rose up to 9.1%. The Federal Reserve was expected to introduce an aggressive monetary policy to counter such rising levels of inflation. For its 2023 outlook, Goldman Sachs predicted the below-potential growth and the labor market to bring down inflation. Although Goldman Sachs forecasted a 35% chance of a recession within the next 12 months, this figure was adjusted to 25% in June 2023.
Despite the challenges for this year, the stock market in July has showcased its best performance in 26 years. According to CNN, this surge was spearheaded by the performance of tech companies, such as Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL). Following the latest buzz and hype around artificial intelligence, tech companies are big on innovation, research, and development for related applications. As per Refinitiv Lipper, over 80% of the 292 companies in the S&P 500 have reported higher earnings than the market consensus. As inflation gradually stabilizes, the market experts seem optimistic for a soft landing. Initially, the Federal Reserve had calculated a 71% probability for a recession during this year. Although the economy still faces recessionary pressure, the probability is not considered as high as initial estimates. In contrast to the estimates for 2023, the S&P 500, coupled with the Nasdaq Composite, experienced the 5th consecutive positive month in July. The S&P 500 rose over 19% during the first 7 months of 2023. In addition, the Dow Jones Industrial Average climbed by 7%, while the Nasdaq Composite grew by 44% by July this year. This can be attributed largely to the performance of tech companies.
As per Forbes, the Federal Reserve’s ability to suppress inflation more than market expectations is the leading factor for such remarkable market performance. As of June 2023, the consumer price index had decreased to roughly 3%. While the Federal Reserve is targeting a long-term CPI rate of 2%, this decrease came quicker than expectations. Additionally, the labor market added over 209,000 jobs in June. In addition to this, the GDP growth rate was reported at 2.4% for the second quarter of 2023. Consequently, consumer discretionary products experienced the largest growth in earnings during the second quarter, with a 36% increase in the EPS for the same time last year. However, despite the performance of the stock market, analysts have not ruled out an increase in inflation and unemployment heading into 2024.
Investors looking for safe haven assets during uncertain economic conditions usually flock towards the stocks tracked by benchmark indices like the Dow Jones Industrial Average. These include Microsoft Corporation (NASDAQ:MSFT), UnitedHealth Group Incorporated (NYSE:UNH), and JPMorgan Chase & Co. (NYSE:JPM).
Our Methodology
We have sorted the 30 stocks from the Dow Jones Industrial Average in the ascending order of the number of hedge fund holders in each firm. We have assessed the hedge fund sentiment from Insider Monkey’s database of 910 elite hedge funds tracked as of the end of the second quarter of 2023. The list is arranged in ascending order of the number of hedge fund investors in each firm.
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Dow 30 Stocks List: Ranked By Hedge Fund Bullishness Index
30. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Number of Hedge Fund Holders: 34
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) operates as a retail pharmacy and distribution company, with a focus on wellness, beauty, and healthcare products. The company operates in the United States and internationally.
According to Insider Monkey’s second quarter database, 34 hedge funds were bullish on Walgreens Boots Alliance, Inc. (NASDAQ:WBA), as opposed to 39 hedge funds during the previous quarter. John W. Rogers’ Ariel Investments is the largest shareholder in the company, with 1.3 million shares worth $35.8 million.
In addition to Microsoft Corporation (NASDAQ:MSFT), UnitedHealth Group Incorporated (NYSE:UNH), and JPMorgan Chase & Co. (NYSE:JPM), Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is one of the best Dow 30 stocks to watch.
29. Dow Inc. (NYSE:DOW)
Number of Hedge Fund Holders: 37
Dow Inc. (NYSE:DOW) specializes in material sciences and produces solutions for packaging, infrastructure, mobility, and consumer applications. The company has a global presence and operates within three major segments – Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings.
As per Insider Monkey’s second quarter database, 37 hedge funds were bullish on Dow Inc. (NYSE:DOW). In contrast, 45 hedge funds had invested in the stock during the preceding quarter. Richard S. Pzena’s Pzena Investment Management held the largest position in the company, with 14.8 million shares worth $792.7 million.
28. The Travelers Companies, Inc. (NYSE:TRV)
Number of Hedge Fund Holders: 41
The Travelers Companies, Inc. (NYSE:TRV) offers a variety of insurance products and services for both businesses and individuals worldwide. The company operates in three main segments – Business Insurance, Bond & Specialty Insurance, and Personal Insurance.
According to Insider Monkey’s June quarter data, a total of 41 hedge funds were bullish on The Travelers Companies, Inc. (NYSE:TRV), as compared to 45 funds in the previous quarter. Cliff Asness’ AQR Capital Management is the largest investor in the company, with 794,289 shares worth $136.7 million.
27. 3M Company (NYSE:MMM)
Number of Hedge Fund Holders: 49
3M Company (NYSE:MMM) is a global technology services provider operating in four segments – Safety and Industrial, Transportation and Electronics, Health Care, and Consumer. In the Safety and Industrial segment, the company offers products like abrasives, closure systems, and protective equipment. The Transportation and Electronics segment provides solutions for transportation vehicles and signage. The Health Care segment offers medical products, and the Consumer segment provides items like cleaning products and stationery. 3M Company (NYSE:MMM) is one of the best Dow 30 stocks to monitor.
According to Insider Monkey’s second quarter database, a total of 49 hedge funds had invested in 3M Company (NYSE:MMM). During the previous quarter, this number was 51. Cliff Asness’ AQR Capital Management is the biggest shareholder in the company, with 1.6 million shares worth $161.8 million.
26. Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holders: 50
Caterpillar Inc. (NYSE:CAT) is an international market leader in providing equipment focused on the construction sector. This includes mining tools, diesel and gas engines, industrial turbines, excavators, and locomotives.
According to Insider Monkey’s second quarter database, 50 hedge funds held stakes in Caterpillar Inc. (NYSE:CAT). In comparison, 52 hedge funds had invested in the company during the last quarter. Bill & Melinda Gates Foundation Trust is the largest investor in the company, with 7.4 million shares worth $1.8 billion.
25. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 51
International Business Machines Corporation (NYSE:IBM) is a household name in the technology sector around the world. The company offers hardware and software products under four main segments – Software, Consulting, Infrastructure, and Financing. International Business Machines Corporation (NYSE:IBM) is one of the most popular Dow 30 stocks among smart investors.
According to Insider Monkey’s second quarter database, a total of 51 hedge funds were bullish on International Business Machines Corporation (NYSE:IBM), as opposed to 49 hedge funds in the previous quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP had the largest stake in the company, with 1.2 million shares worth $162.5 million.
24. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 53
Verizon Communications Inc. (NYSE:VZ) is one of the leading telecommunications companies in the world. It offers wired and wireless networking solutions through two major segments – Verizon Consumer Group and Verizon Business Group.
According to Insider Monkey’s second quarter database, 53 hedge funds were bullish on Verizon Communications Inc. (NYSE:VZ), in contrast to 59 hedge funds that had invested during the past quarter. Ric Dillon’s Diamond Hill Capital had the largest position in the company, with 6.7 million shares worth $249.6 million.
23. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 55
Cisco Systems, Inc. (NASDAQ:CSCO) is a leading provider of network solutions with a strong international presence. Apart from IP solutions, the company also offers cloud solutions and other data center services, with a focus on security and efficiency.
According to Insider Monkey’s second quarter database, a total of 55 hedge funds were bullish on Cisco Systems, Inc. (NASDAQ:CSCO), while 61 hedge funds had assumed a similar position in the previous quarter. Cliff Asness’ AQR Capital Management held the largest share in the company, with 10.9 million shares worth $567.7 million.
22. Amgen Inc. (NASDAQ:AMGN)
Number of Hedge Fund Holders: 57
Amgen Inc. (NASDAQ:AMGN) is a biopharmaceutical company that specializes in providing treatment and therapies for neurological, cardiovascular, cancer, and other diseases. The company has a global presence and is involved in the research for a number of medical disorders as well.
According to Insider Monkey’s second quarter database, 57 hedge funds were bullish on Amgen Inc. (NASDAQ:AMGN). This number remained unchanged from the preceding quarter. John Overdeck and David Siegel’s Two Sigma Advisors is the largest investor in the company, with 1.6 million shares worth $355.9 million.
21. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 57
The Boeing Company (NYSE:BA) designs and manufactures airliners, missile defense systems, and launch systems worldwide. Its operations are divided into four major segments – Commercial Airplanes, Defense, Space & Security, Global Services, and Boeing Capital.
According to Insider Monkey’s second quarter database, 57 hedge funds were bullish on The Boeing Company (NYSE:BA). This number increased from 52 hedge funds in the last quarter. Phill Gross and Robert Atchinson’s Adage Capital Management had a significant position in the company, with over 2 million shares worth $438.6 million.
20. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 61
Honeywell International Inc. (NASDAQ:HON) is a technology-led company that manufactures diversified solutions in aerospace, building technologies, and other performance materials. This includes auxiliary power units, propulsion engines, and other software-based systems. Honeywell International Inc. (NASDAQ:HON) is one of the premier Dow 30 stocks to monitor.
According to Insider Monkey’s second quarter database, 61 hedge funds were bullish on Honeywell International Inc. (NASDAQ:HON). This number increased from 58 during the previous quarter. John Overdeck and David Siegel’s Two Sigma Advisors is a prominent shareholder in the company, with 1.9 million shares worth $406.4 million.
19. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 61
The Coca-Cola Company (NYSE:KO) is a leading non-alcoholic beverage company with a strong footprint all over the world. Apart from the original beverage, the company also manufactures sparkling drinks in a number of flavors.
According to Insider Monkey’s second quarter database, a total of 61 hedge funds were bullish on The Coca-Cola Company (NYSE:KO). This number remained unchanged from the past quarter. Warren Buffett’s Berkshire Hathaway is the largest shareholder in the company, with 400 million shares worth $24 billion.
18. The Home Depot, Inc. (NYSE:HD)
Number of Hedge Fund Holders: 68
The Home Depot, Inc. (NYSE:HD) is a retailer that specializes in home decor and improvement. It focuses on building materials, lifestyle products, and installation systems, such as those for garages, flooring, and kitchens. The Home Depot, Inc. (NYSE:HD) ranks 18th on our list of Dow 30 stocks.
According to Insider Monkey’s second quarter database, 68 hedge funds were bullish on The Home Depot, Inc. (NYSE:HD). In comparison, this number was 65 during the previous quarter. Israel Englander’s Millennium Management held a significant position in the company, with 1.8 million shares worth $561.3 million.
17. McDonald’s Corporation (NYSE:MCD)
Number of Hedge Fund Holders: 68
McDonald’s Corporation (NYSE:MCD) is universally recognized as a leading fast-food chain across the globe. It offers burgers, desserts, beverages, and breakfast products.
According to Insider Monkey’s second quarter database, 68 hedge funds were bullish on McDonald’s Corporation (NYSE:MCD), as opposed to 64 hedge funds from the last quarter. Ken Griffin’s Citadel Investment Group held the largest position in the company, with 2.6 million shares worth $777 million.
Like Microsoft Corporation (NASDAQ:MSFT), UnitedHealth Group Incorporated (NYSE:UNH), and JPMorgan Chase & Co. (NYSE:JPM), McDonald’s Corporation (NYSE:MCD) is one of the most popular Dow 30 stocks among smart investors.
16. The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Hedge Fund Holders: 70
The Goldman Sachs Group, Inc. (NYSE:GS) is one of the leading financial institutions in the world. It provides financial and other consulting services under these segments – Global Banking & Markets, Asset & Wealth Management, and Platform Solutions. The Goldman Sachs Group, Inc. (NYSE:GS) is one of the top Dow 30 members.
According to Insider Monkey’s second quarter database, a total of 70 hedge funds were invested in The Goldman Sachs Group, Inc. (NYSE:GS). This number was 69 in the preceding quarter. Boykin Curry’s Eagle Capital Management is the largest investor in the company, with 2.8 million shares worth $904.6 million.
15. NIKE, Inc. (NYSE:NKE)
Number of Hedge Fund Holders: 70
NIKE, Inc. (NYSE:NKE) designs, manufactures, and commercializes athleisure, sports shoes, specialized sports equipment, and related accessories worldwide. It is one of the top Dow 30 stocks to monitor.
According to Insider Monkey’s second quarter database, 70 hedge funds were bullish on NIKE, Inc. (NYSE:NKE), as opposed to 81 from the past quarter. Terry Smith’s Fundsmith LLP is the largest shareholder of the company, with 6.7 million shares worth $740.6 million.
14. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 71
Intel Corporation (NASDAQ:INTC) is a leading provider for computing solutions in the world. It focuses on software and hardware-based solutions. This includes data center services, processors, chips, cloud-based solutions, accelerated computing systems, and other products and services.
According to Insider Monkey’s second quarter database, 71 hedge funds were bullish on Intel Corporation (NASDAQ:INTC), while 68 hedge funds had invested during the preceding quarter. Israel Englander’s Millennium Management held the largest stake in the company, with 11 million shares worth $370.4 million.
13. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 73
American Express Company (NYSE:AXP) focuses on the provision of financial services internationally. This includes credit cards, travel services, and payment solutions. It operates under three major segments – Global Consumer Services Group, Global Commercial Services, and Global Merchant and Network Services.
According to Insider Monkey’s second quarter database, a total of 73 hedge funds were bullish on American Express Company (NYSE:AXP). In comparison, 77 hedge funds had invested in the company during the past quarter. Warren Buffett’s Berkshire Hathaway is the largest investor in the company, with 151.6 million shares worth $26.4 billion.
12. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 73
Chevron Corporation (NYSE:CVX) is an energy company that specializes in the exploration, development, and production of oil and gas. It operates under two main segments – Upstream and Downstream. While the first segment focuses on the extraction of resources, Downstream is all about converting crude oil into petroleum products.
According to Insider Monkey’s second quarter database, 73 hedge funds were bullish on Chevron Corporation (NYSE:CVX), as opposed to 64 in the previous quarter. Warren Buffett’s Berkshire Hathaway is the largest shareholder in the company, with 123.1 million shares worth $19.4 billion.
11. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Fund Holders: 74
The Procter & Gamble Company (NYSE:PG) is a leading company for the manufacture, distribution, and marketing of packaged consumer products internationally. The company owns a number of consumer brands in beauty, healthcare, hygiene, feminine, and family care divisions.
According to Insider Monkey’s second quarter database, 74 hedge funds were bullish on The Procter & Gamble Company (NYSE:PG). This number was 75 during the last quarter. Terry Smith’s Fundsmith LLP is the largest investor in the company, with 4.8 million shares worth $735.8 million.
Like Microsoft Corporation (NASDAQ:MSFT), UnitedHealth Group Incorporated (NYSE:UNH), and JPMorgan Chase & Co. (NYSE:JPM), The Procter & Gamble Company (NYSE:PG) is one of the top Dow 30 stocks on the radar of elite hedge funds.
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Disclosure: None. Dow 30 Stocks List: Ranked By Hedge Fund Bullishness Index is originally published on Insider Monkey.