The Dow Jones Industrial Average remain near record highs at the end of May, as the current stock market rally continues. The best Dow Jones stocks to buy and watch in June 2021 are Apple (AAPL), Boeing (BA), Disney (DIS), Goldman Sachs (GS) and Microsoft (MSFT).
There are clear winners — and losers — heading into the sixth month of 2021. The top three performing Dow Jones stocks through May were Goldman Sachs, Caterpillar (CAT) and American Express (AXP) with advances of 41.1%, 32.5% and 32.4%, respectively.
Amid the current stock market rally, the tech-heavy Nasdaq ended May up 6.7%. The S&P 500 was up 11.9%, while the DJIA was up 12.8% through May 28.
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||2021 YTD Performance|
Source: IBD Data As Of May 28, 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 June 2021 that are in or near buy zones include Apple, Boeing, Disney, Goldman Sachs and Microsoft.
Among the top Dow Jones stocks, Apple rose 1.5% Monday, as it tries to retake its key 50-day moving average, which would be bullish for the stock’s prospects. Shares are tracing a new flat base with with a 137.17 buy point.
In early May, shares triggered the 7%-8% loss-cutting sell rule after a brief breakout past a cup with handle’s 135.53 buy point.
According to the IBD Stock Checkup, Apple stock shows a 71 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 moving up the right side of a new base, according to IBD MarketSmith chart analysis. Shares are forming a new cup base, offering a new entry at 278.67.
Shares lost 0.3% Monday.
Disney stock remains below its key 50-day moving average, according to IBD MarketSmith chart analysis.
Shares rose 0.1% Monday.
Goldman Sachs Stock
Goldman Sachs is out of buy range past a 356.96 buy point in a flat base. Shares moved down 0.9% Monday.
GS stock rallied April 14 after reporting blowout Q1 earnings, led by strong trading and investment banking performance.
Software giant Microsoft moved up 0.1% Monday. Shares of the Dow Jones leader are forming a new flat base with a 263.29 buy point.
Microsoft is an IBD Leaderboard stock. Per Leaderboard commentary, “Microsoft has lost ground on its 10-week moving average, but is trying to rally back. A new base is forming, which should be the focus now.”
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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