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5 Best Stocks of Dow ETF From Last Week

By Zacks Investment ResearchStock MarketsMay 26, 2020 12:00AM ET
www.investing.com/analysis/5-best-stocks-of-dow-etf-from-last-week-200525764
5 Best Stocks of Dow ETF From Last Week
By Zacks Investment Research   |  May 26, 2020 12:00AM ET
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DJI
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BA
-2.62%
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DIS
-0.89%
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DIA
-1.43%
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TRV
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AXP
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Amid growing tensions between Washington and China, Wall Street capped a strong week of gains thanks to optimism surrounding a potential coronavirus vaccine and the reopening of the economy, which has started to propel demand and is likely to revive growth.

In particular, Moderna (NASDAQ:MRNA) MRNA reported promising early results for its coronavirus vaccine. The vaccine produced COVID-19 antibodies in all 45 participants (read: Moderna Soars: Biotech ETFs in Focus).

Additionally, the Fed said the central bank still has plenty of ammunition to rescue the economy from a deep slowdown, indicating a potential recovery in the second half of the year. The Fed would expand existing lending programs or start new ones if required.

Notably, the Dow Jones gained 3.3% last week, marking its best weekly performance since April 9. Given this, SPDR Dow Jones Industrial Average (NYSE:DIA) ETF DIA tracking the Dow Jones Index has been in the spotlight. Let’s take a closer look at the fundamentals of DIA and its performance.

DIA in Focus

This is one of the largest and most popular ETFs in the large-cap space with AUM of $19.3 billion and average daily volume of 2.7 million shares. Holding 30 blue chip stocks, the fund is widely spread across components with each holding less than 9% share. Information technology (25.7%), healthcare (15.3%), consumer discretionary (14.6%), financials (12.9%) and industrials (12.9%) are the top five sectors. DIA charges 16 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: Here's How Dow Jones Bounced Back: ETFs & Stocks in Focus).

Though most stocks in the fund’s portfolio were green last week, we have highlighted the five best-performing stocks in the ETF that led the way higher with their respective positions in the fund’s basket:

The Boeing Company (NYSE:BA) BA: The stock has gained 14.6% past month. It has seen negative earnings estimate revision of $4.20 in a month for this year. Its earnings are expected to decline 45.5%. The stock belongs to a bottom-ranked Zacks industry (bottom 23%) and takes the tenth spot in DIA portfolio with 3.8% exposure. Boeing currently has a Zacks Rank #3 and a VGM Score of F.

The Travelers Companies Inc (NYSE:TRV). TRV: This stock makes up for 2.8% allocation and gained 10.8% past week. The stock witnessed no earnings estimate revision activity for this year over the past month and has an estimated year-over-year earnings decline of 2.19%. TRV belongs to a bottom-ranked Zacks industry (bottom 34%). It has a Zacks Rank #3 and a VGM Score of B.

American Express Company (NYSE:AXP) AXP: This stock takes 2.5% allocation in the fund’s basket and has gained 8.6% in the same time frame. The stock saw negative earnings estimate revision of $1.94 for this year over the past month and has estimated year-over-year earnings decline of 62.2%. American Express belongs to a bottom-ranked Zacks industry (bottom 42%). It carries a Zacks Rank #3 and has a VGM Score of F.

The Walt Disney Company (NYSE:DIS) DIS: This stock takes 3.3% allocation in the fund’s basket and climbed 8.2% last week. The stock saw negative earnings estimate revision of 94 cents for fiscal year (ending September 2019) over the past month and has an estimated year-over-year earnings decline rate of 63.78%. Disney belongs to a bottom-ranked Zacks industry (bottom 4%). It has a Zacks Rank #5 (Strong Sell) and a VGM Score of F (read: Disney ETFs at Risk on Weak Earnings Amid Coronavirus Crisis).

NIKE Inc. NKE: The stock gained 7.8% last week and makes up for 2.6% share in DIA. It has a Zacks Rank #3 and VGM Score of C. The company has seen negative earnings estimate revision of couple of cents for the year (ending May 2020) over the past month and has an expected earnings growth rate of 6.02%. The stock is part of a bottom-ranked Zacks industry (bottom 4%).

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NIKE, Inc. (NKE): Free Stock Analysis Report

The Travelers Companies, Inc. (TRV): Free Stock Analysis Report

The Boeing Company (BA): Free Stock Analysis Report

American Express Company (AXP): Free Stock Analysis Report

The Walt Disney Company (DIS): Free Stock Analysis Report

Moderna, Inc. (MRNA): Free Stock Analysis Report

SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports

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5 Best Stocks of Dow ETF From Last Week
 

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5 Best Stocks of Dow ETF From Last Week

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