Dow Jones Stocks To Buy And Watch For January 2021: Apple Stock Offers New Buy Point
The Dow Jones Industrial Average again hit more record highs in early January, as the current stock market rally continues. Top Dow Jones stocks to watch in January 2021 are Apple, Microsoft and Visa (V).
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There are clear winners — and losers — heading into the first month of 2021. The top three performing Dow Jones stocks in 2020 were Apple (AAPL), Microsoft (MSFT) and Nike (NKE) with advances of 80.8%, 41% and 39.6%, respectively.
The three biggest losers in 2020 were Boeing (BA), Walgreens Boots Alliance (WBA) and Chevron (CVX) with declines of 34.3%, 32.4% and 29.9%, respectively.
Amid the coronavirus stock market rally, the tech-heavy Nasdaq ended 2020 up 43.6%, its best year since 2009. The S&P 500 was up 16.3%, while the DJIA was up 7.2% in 2020.
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 | 2020 YTD Performance |
|---|---|---|---|
| Apple | (AAPL) | 132.69 | +80.8% |
| Home Depot | (HD) | 265.62 | +21.6% |
| Microsoft | (MSFT) | 222.42 | +41.0% |
| Nike | (NKE) | 141.47 | +39.6% |
| Salesforce.com | (CRM) | 222.53 | +36.8% |
| Visa | (V) | 218.73 | +16.4% |
Source: IBD Data As Of Dec. 31, 2020
Amid the current stock market rally— according to the IBD Big Picture — investors should continue to use the stock market’s strength to buy breakouts. Start slowly with new purchases and see how they perform. If they work, then add more exposure. But if breakouts start to fail, then you can back away.
Potential Dow Jones stocks to buy and watch in January 2021 that are in or near buy zones include Apple, Microsoft and Visa.
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Apple Stock
Among the top Dow Jones stocks, Apple rose 3.3% Wednesday and is just above its 50-day support level. Shares are also approaching a new buy point at 138.89, according to IBD MarketSmith chart analysis.
In recent weeks, Apple shares have moved above aggressive entries at 125.49 and 122.09.
According to the IBD Stock Checkup, Apple stock shows an 81 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.
Apple stock is on IBD’s Leaderboard. Per Leaderboard commentary, “The alternate entry is in the lower half of the base but the RS line is improving. Apple nearly doubled from its breakout in April and will be tough to replicate that run. The base is third stage, which is a reason to have lower expectations this time around.”
Microsoft Stock
Software giant Microsoft traded up 3.65% Wednesday. Shares are back above their 50-day line. The stock closing in on a proper buy point at 228.22.
Microsoft is also an IBD Leaderboard stock.
Visa Stock
Recent IBD Stock Of The Day, Visa, triggered the 7%-8% loss-cutting sell rule from a 217.75 buy point in a flat base, according to IBD MarketSmith chart analysis.
Shares moved up 2.2% Wednesday.
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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