The Dow Jones Industrial Average slid from record highs at the end of February, as the current stock market pullback continues. The best Dow Jones stocks to buy and watch in March 2021 are Apple (AAPL), Disney (DIS), Microsoft (MSFT) and Visa (V).
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There are clear winners — and losers — heading into the third month of 2021. The top three performing Dow Jones stocks through February were Intel (INTC), Goldman Sachs (GS) and Walgreens Boots Alliance (WBA) with advances of 22.0%, 21.2% and 20.2%, respectively.
The three biggest Dow Jones losers through February 2021 were Procter & Gamble (PG), Merck (MRK) and Coca Cola (KO) with declines of 11.2%, 11.2% and 10.7%, respectively.
Amid the current stock market rally, the tech-heavy Nasdaq ended February up 2.4%. The S&P 500 was up 1.5%, while the DJIA was up 1.1% through Feb. 26.
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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 |
|---|---|---|---|
| Apple | (AAPL) | 121.26 | -8.6% |
| Disney | (DIS) | 270.82 | +4.3% |
| Intel | (INTC) | 60.78 | +22.0% |
| Microsoft | (MSFT) | 232.38 | +4.5% |
| Salesforce.com | (CRM) | 216.50 | -2.7% |
| Visa | (V) | 212.39 | -2.9% |
Source: IBD Data As Of Feb. 26, 2021
Amid the current stock market pullback — according to the IBD Big Picture — investors should continue to focus on defense. Avoid new breakouts, unless they’re exceptional, and make sure to sell any stock that falls more than 7% below your purchase price. Remember, you don’t have to wait for the 7%-8% loss if the stock is clearly not acting well.
Focus on stocks that show strong relative strength during the current stock market weakness. They could be some of market’s leaders if the indexes are able to rebound.
Potential Dow Jones stocks to buy and watch in March 2021 that are in or near buy zones include Apple, Disney, Microsoft and Visa.
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Apple Stock
Among the top Dow Jones stocks, Apple jumped 1% Monday. Apple stock is below its 10-week line and is about 17% off its 52-week high. A strong rebound back above the 10-week level would be bullish for the stock’s prospects.
On Feb. 18, the stock triggered the 7%-8% loss-cutting sell rule when it fell more than 7% below its 138.89 buy point in a cup with handle.
According to the IBD Stock Checkup, Apple stock shows a 67 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.
Disney Stock
Disney stock is out of buy range past a 183.50 buy point in a flat base, according to IBD MarketSmith chart analysis. The 5% buy area goes up to 192.68.
Disney stock moved down 0.6% Monday.
Microsoft Stock
Software giant Microsoft was down 1.35% Monday. Shares of the Dow Jones leader broke out past a 232.96 buy point in recent weeks, and are just above that level.
Microsoft is an IBD Leaderboard stock. Per Leaderboard commentary, “Microsoft is just above the 232.96 buy point and above an earlier entry at 228.22. Shares are also trying to stay above the 50-day line.”
Nike Stock
Nike stock is approaching a 148.05 buy point in a flat base, according to IBD MarketSmith chart analysis.
Shares are about 5% away from their buy point amid last week’s 5.3% advance. The stock moved up 2% Monday.
Visa Stock
Visa stock is extended above a 211.69 buy point in a cup with handle, according to IBD MarketSmith chart analysis. The 5% buy zone goes up to 222.27.
Shares slipped 0.6% Monday.
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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