TheDow Jones Industrial Averageremain near record highs at the end of April, as the current stock market rally continues. The best Dow Jones stocks to buy and watch in May 2021 areApple(AAPL),Boeing(BA),Disney(DIS),Goldman Sachs(GS) andMicrosoft(MSFT).
There are clear winners — and losers — heading into the fifth month of 2021. The top three performing Dow Jones stocks through April wereWalgreens Boots Alliance(WBA), Goldman Sachs andAmerican Express(AXP) with advances of 33.2%, 32.1% and 26.8%, respectively.
The three biggest Dow Jones losers through April 2021 wereMerck(MRK),Nike(NKE) and Procter & Gamble(PG) with declines of 8.9%, 6.3% and 4.1%, respectively.
Amid the current stock market rally, the tech-heavy Nasdaq ended April up 8.3%. The S&P 500 was up 11.3%, while the DJIA was up 10.7% through April 30.
What Is The Dow Jones Industrial Average?
Founded in 1896 with 12 stocks, theDow Jones Industrial Averageis 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
Amid the current stock market rally — according to theIBD Big Picture— investors should focus on buying top stocks breaking out past correct buy points.
Focus on stocks that show strong relative strengthduring the recent stock market strength. They could be some of market's leaders if the indexes are able to continue to set new highs.
Potential Dow Jones stocks to buy and watch in May 2021 that are in or near buy zones include Apple, Boeing, Disney, Goldman Sachs and Microsoft.
Apple Stock
Among the top Dow Jones stocks, Apple rose 0.8% Monday. Shares are trying to break out past a cup with handle's 135.53 buy point, but are below the new entry.
According to theIBD Stock Checkup,Apple stock showsa 77 out of a best-possible 99 IBD Composite Rating. TheComposite 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.
Boeing Stock
Airplane maker Boeing is below its key 50-day moving average line, according toIBD MarketSmithchart analysis. Meanwhile, shares could be forming a new base after a previous breakout above a 244.18 buy point faded.
Shares rose 0.4% Monday.
Disney Stock
Disney stock is approaching a 203.12buy pointin aflat base, according to IBD MarketSmithchart analysis. But the stock is still below its key 50-day moving average.
Disney stock moved down 0.3% Monday.
Goldman Sachs Stock
Goldman Sachsis approachinga 356.96 buy point in a flat base. Shares rallied 0.5% Monday.
GS stock rallied April 14 after reporting blowout Q1 earnings, led by strong trading and investment banking performance.
Microsoft Stock
Software giant Microsoft moved down 0.1% Monday. Shares of the Dow Jones leader are back in the 5% buy zone above a 246.23 buy point in a new flat base.
Microsoft is anIBD Leaderboardstock. Per Leaderboard commentary, "Microsoft fell back into buy range after a poor reaction to the earnings report. It's best to avoid buying as shares decline, even if they are in a buy zone."