Top 3 Dow Jones Stocks So Far in 2020


2020 has been a roller coaster for investors as the coronavirus pandemic has created unprecedented levels of economic and political uncertainty. After diving for the first three months of the year, the Dow Jones Industrial (DJINDICES: ^ DJI) rebounded strongly from their worst levels of the year. Yet even with the rebound, the average is down for the year, and 80% of the 30 stocks that make up the Dow Jones have lost ground since the start of the year.

That left a select group of strong contenders vying for the top spots in the Dow Jones midway through. Below, we’ll take a look at which three stocks reign supreme and what their outlook looks like for the rest of 2020 and beyond.

AAPL given by YCharts.

Microsoft, up 31%

Amid a few dozen losing stocks in the Dow Jones, Microsoft (NASDAQ: MSFT) does a lot to limit the losses of the average. What’s particularly impressive about the software giant’s 31% rise so far this year is that it follows an even steeper rise of 55% for Microsoft in 2019.

Microsoft entered 2020 with a lot of positive momentum from its cloud computing initiatives, which included making its most popular software packages available on a subscription basis to users, regardless of operating system. that they use. This decision by CEO Satya Nadella has paid off. In addition, Microsoft’s capabilities have proven to be essential to businesses trying to adapt to the COVID-19 environment, which is also helping to spike the stock. With no sign of the end of the digital revolution, investors are optimistic that Microsoft can continue to gain ground and generate excellent returns for shareholders.

Four number balloons spelling out 2020.

Image source: Getty Images.

Apple, up 24%

Providing the other half of the tech punch in 2020 is Apple (NASDAQ: AAPL). Its stock earnings are lagging behind Microsoft this year, but it’s a reversal from the leadership role played by Apple in 2019 with its incredible 86% lead. With the continued need for mobile device connectivity, Apple has remained a consumer favorite around the world and has generally overcome the trade-related tensions that have held back some of its rivals.

Apple has followed its playbook well so far in 2020, placing more emphasis on its services while gradually making progress in adding features to its iPhone lineup. Many investors are eagerly awaiting the adoption of 5G wireless network standards in the United States, and Apple is expected to release its first 5G compatible iPhone before the end of the year. This could trigger a huge new upgrade cycle, especially among users who have taken more advantage of wireless networks in their remote work. If demand is strong, then this could mark a huge win for Apple and help support further earnings for its stocks.

Home Depot, up 14%

Investors in the home improvement giant Home deposit (NYSE: HD) Can’t brag about Apple or Microsoft’s incredible performance over the past year and a half, but they have to settle for a solid 14% increase on top of last year’s 27% gain. Even though the retailer took a hit from the coronavirus crisis, it has adapted well to the changing needs of its customers.

With people stuck at home, projects around the house were a natural way to use up the time available, and The Home Depot took advantage of the potential there. With a key shift to its e-commerce channel, The Home Depot has been able to make products available both through delivery and in-store pickup, and this has managed to keep things going even when many other retailers have faced to full closures. Spending was higher, but the company received kudos for treating workers well, and Home Depot has proven its resilience in a way that builds confidence for the future.

Can the Dow Jones continue to recover?

The Dow Jones is still down almost 10% for the year. This is bad news for investors, but it makes the performance of these three fast growing stocks even more impressive. Shareholders can expect even more from Home Depot, Apple and Microsoft as 2020 continues.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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