The Dow Jones industrial average has a had a volatile 2018 so far, down 1.7% vs. the end of 2017 and lagging the performance of the S&P 500 index and Nasdaq composite. But several Dow Jones stocks have been solid performers. Nike (NKE) has sprinted to the top of the class of 2018, with Visa (V), Microsoft (MSFT), Boeing (BA) and Cisco Systems (CSCO) also in the top five.
Their performance is in stark contrast to the five biggest Dow Jones losers in 2018..
Nike Stock
The sneaker powerhouse stock has soared 27.4% since the start of the year. That includes 11 % surge in Friday’s stock market trading to a record high.
The sportswear behemoth vaulted over Visa to become the top-performing Dow stock after Nike released stellar earnings late Thursday. North America sales rose 3% after three straight quarters of declines. And Nike announced a $15 billion buyback plan.
The stock has now blasted out of buy range after breaking out from an 11-week flat base on May 16. In addition it is trading way above its 50-day line, though its relative strength line remains off 2016 highs.
Visa Stock
The credit card giant’s stock has been on a steady charge since the start of the year, and has seen its value jump by 16.2%. Visa earnings blew out views in the latest quarter with EPS soaring 29% to $1.11 and revenue jumping 13% to $5.1 billion.
The Dow Jones stock broke out from a five-week flat base buy point of 125.54 on April 26, and is now slightly extended from the 5% chase zone. Visa stock found support at its 50-day moving average this past week, MarketSmith analysis shows.
In what could be a key development in the online shopping era, Visa could abandon its faster-online-checkout option. Instead it would adopt a single shared-payment button for online payments with Mastercard (MA).
Visa also has an alliance with PayPal. Users can now even draw on their Visa to pay for something via their phone in physical retail locations. This has given PayPal (PYPL) a foothold in this space, while increasing business for the credit card company.
Microsoft Stock
Microsoft has been the third-best performer in the Dow Jones. Indeed its annual price increase of 15.3% for the year has easily outstripped that of its more glamorous long-term rival Apple (AAPL), up 9.4%. In its most recent quarter the Redmond giant scored a double beat, with EPS up 36% to 95 cents and sales jumping 16% to $26.8 billion.
In a somewhat similar pattern to Visa, Microsoft stock hasn’t rallied much since clearing a six-week flat base in May. The stock remains in buy zone from its 97.34 buy point, closing at 98.61 on Friday.
The Dow Jones stock got a boost back in March when Chief Executive Satya Nadella made sweeping changes by establishing two main divisions, continuing his transformation. Shifting focus away from Windows and toward the cloud, Microsoft will have one division focused on “experiences and devices” and the second on cloud and artificial intelligence platforms.
“Computing experiences are evolving to include multiple senses and are no longer bound to one device at a time but increasingly spanning many as we move from home to work and on the go,” Nadella said in a letter to employees.
Boeing Stock
Boeing stock has really taken off in 2018, up 13.8% for the year to date. However the potential impact of the Trump trade war with China has weighed on shares in recent weeks.
The aeronautical giant’s stock closed Friday at 335.51, off 10% from its June 7 high. The stock’s most recent breakout from a 14-week cup with handle base failed. Boeing stock flashed a sell signal on Monday after China “firmed up” commitments to purchase jets from European rival Airbus (EADSY) amid the spiraling trade war with the U.S.
However Boeing orders remain strong, with India’s Jet Airways this week announcing an agreement Monday to purchase 75 Boeing 737 Max jets.
The Dow Jones aerospace giant is exploring new areas of innovation. Boeing unveiled a concept hypersonic jet at the American Institute of Aeronautics and Astronautics Aviation 2018 conference in Atlanta. The airliner would be capable of flying passengers across the Atlantic in just two hours, even faster than the legendary Concorde.
Cisco Stock
Cisco Systems closes out the top five, with a year-to-date gain of 12.35%. Cisco just edged earnings estimates in its most recent quarter. EPS climbed 10% to 66 cents while revenue rose 4% to $12.5 billion. However the networking giant disappointed by only offering in-line July-quarter guidance.
Cisco stock closed Friday at 43.03, below its 50-day line. It is in a flat base with a 46.47 buy point.
Cisco stock popped in November after it reported earnings that beat views. The stock rallied again in February after the company announced a buyback.
The Dow Jones stock has stepped up acquisitions to speed up its shift to software and services. Its core business has been selling network switches and routers.
