Tue. Jan 25th, 2022

The Dow Jones Industrial Average ended 2021 just off record highs. The best Dow Jones stocks to buy and watch in January 2022 are Apple (AAPL), Cisco Systems (CSCO), Goldman Sachs (GS), JPMorgan (JPM) and Microsoft (MSFT).


There are clear winners — and losers — at the start of 2022. The top three performing Dow Jones stocks in 2021 were Home Depot, Microsoft and Goldman Sachs with advances of 56.2%, 51.2% and 45.1%, respectively.

The three biggest Dow Jones losers in 2021 were Disney (DIS), Verizon Communications (VZ) and Boeing (AMGN) with declines of 14.5%, 11.6% and 6%, respectively.

Amid the current stock market rally, the tech-heavy Nasdaq finished the year up 21.4%. The S&P 500 was up 26.9%, while the Dow Jones Industrial Average was up 18.7% through the end of 2021.

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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) 177.57 +33.8%
Cisco Systems (CSCO) 63.37 +41.6%
Goldman Sachs (GS) 382.55 +45.1%
Home Depot (HD) 415.01 +56.2%
Microsoft (MSFT) 336.32 +51.2%
Source: IBD Data As Of Dec. 31, 2021

Amid the current stock market rally — according to the IBD Big Picture — investors should focus on the top stocks that show strong relative strength during the recent stock market weakness. They could be some of market’s leaders if the Dow Jones Industrial Average is able to rebound.

Potential Dow Jones stocks to buy and watch in January 2022 that are in or near buy zones include Apple, Cisco Systems, Goldman Sachs, JPMorgan and Microsoft.

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This Dow Jones Stock Leader Above New Buy Point

Apple shares remain extended past a cup with handle’s 153.27 buy point following recent weakness. The 5% buy area topped out at 160.93. Apple stock dropped 1.6% Thursday.

According to the IBD Stock Checkup, Apple stock shows a strong 96 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.

Cisco Systems Stock

Cisco Systems is barely in buy range past a double bottom’s 58.73 buy point, according to IBD MarketSmith chart analysis. Shares are at the top of the 5% buy range that topped out at 61.67.

CSCO stock traded down 1% Thursday.

Goldman Sachs Stock

Dow Jones stock Goldman Sachs was up 0.1% Thursday, but is still below key 50-day line. GS shares are forming a cup-with-handle base with a 412.76 buy point.

In November, Goldman Sachs stock triggered the 7%-8% loss rule from a flat base’s 420.86 buy point.

JP Morgan Stock

JPMorgan shows a 173.06 buy point in a flat base after retaking the 50-day line in a 5.6% rally last week. Shares fell 0.2% Thursday.

Look for the stock’s relative strength line to strengthen if JPM stock is able to break out past the new buy point. For now, it remains relatively far from its old highs.

Microsoft Stock

Software giant Microsoft dropped 4.1% Thursday. Shares are still below their 50-day moving average line after giving up that key level last week.

Microsoft is an IBD Leaderboard stock. Per Leaderboard commentary, Microsoft has fallen under its 50-day moving average as it forms a flat base. It is at consolidation lows and there is a chance it could evolve into a different kind of base.

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 MarketSmithLeaderboard 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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