It is 2011 and we have our outlook target pieces for sectors and for indexes for the year ahead. After taking a look at the implied upside to one-year price targets for Dow Jones Industrial Average components, the average expected upside by analysts for each DJIA component is roughly 12.65% in 2011. After refining the list to find stocks for value investors there were 6 of the 30 DJIA components that have an implied
upside of more than 20%. Those with the most expected upside are as follows: The Boeing Company (NYSE: BA), Bank of America Corporation (NYSE: BAC), Cisco Systems, Inc. (NASDAQ: CSCO), Hewlett-Packard Company (NYSE: HPQ), J.P. Morgan Chase & Co. (NYSE: JPM), and Pfizer, Inc. (NYSE: PFE).
We have compiled a chart here for the 2010 ending prices and listed the consensus price target by Thomson Reuters on each component, listed what the implied gain is expected to be, given the 52-week range and the gain from the low of 2010 and the drop from the high of 2010. After the table, we have broken out each stock in more detail with dividends, added in color on each, and shown what the caveats are that could get in the way.
| Ticker | Price | Target | Exp. Gain | 52 Wk Range | From Low | From High |
|---|---|---|---|---|---|---|
| AA | $15.39 | $17.01 | 10.5% | 9.81 – 17.60 | Up 56.88% | Down 12.56% |
| AXP | $42.92 | $50.82 | 18.4% | 36.60 – 49.19 | Up 17.27% | Down 12.75% |
| BA | $65.26 | $81.62 | 25% | 54.80 – 76.00 | Up 19.09% | Down 14.13% |
| BAC | $13.34 | $17.74 | 32.9% | 10.91 – 19.86 | Up 22.27% | Down 32.83% |
| CAT | $93.66 | $98.31 | 4.9% | 50.50 – 94.89 | Up 85.47% | Down 1.30% |
| CVX | $91.25 | $95.12 | 4.2% | 66.83 – 92.39 | Up 36.54% | Down 1.23% |
| CSCO | $20.23 | $24.45 | 20.8% | 19.00 – 27.74 | Up 6.47% | Down 27.07% |
| DD | $49.88 | $54.79 | 9.8% | 31.88 – 50.17 | Up 56.46% | Down 0.58% |
| DIS | $37.51 | $40.96 | 9.1% | 28.71 – 38.00 | Up 30.65% | Down 1.29% |
| GE | $18.29 | $21.00 | 14.8% | 13.75 – 19.70 | Up 33.02% | Down 7.16% |
| HD | $35.06 | $36.50 | 4.1% | 26.62 – 37.03 | Up 31.71% | Down 5.32% |
| HPQ | $42.10 | $53.63 | 27.4% | 37.32 – 54.75 | Up 12.81% | Down 23.11% |
| IBM | $146.76 | $152.53 | 3.9% | 116.00 – 147.53 | Up 26.52% | Down 0.52% |
| INTC | $21.03 | $23.91 | 13.7% | 17.60 – 24.37 | Up 19.49% | Down 13.71% |
| JNJ | $61.85 | $67.84 | 9.7% | 56.86 – 66.20 | Up 8.78% | Down 6.57% |
| JPM | $42.42 | $52.61 | 24% | 35.16 – 48.20 | Up 20.65% | Down 11.99% |
| KFT | $31.51 | $35.00 | 11.1% | 27.09 – 32.67 | Up 16.32% | Down 3.55% |
| KO | $65.77 | $70.88 | 7.7% | 49.47 – 65.88 | Up 32.95% | Down 0.17% |
| MCD | $76.76 | $86.00 | 12% | 61.06 – 80.94 | Up 25.71% | Down 5.16% |
| MMM | $86.30 | $99.38 | 15.1% | 68.96 – 91.49 | Up 25.15% | Down 5.67% |
| MRK | $36.04 | $42.20 | 17.1% | 30.70 – 41.56 | Up 17.39% | Down 13.28% |
| MSFT | $27.91 | $32.60 | 16.8% | 22.73 – 31.58 | Up 22.79% | Down 11.62% |
| PFE | $17.51 | $21.23 | 21.2% | 14.00 – 20.36 | Up 25.07% | Down 14.00% |
| PG | $64.33 | $71.55 | 11.2% | 39.37 – 65.38 | Up 63.40% | Down 1.61% |
| T | $29.38 | $30.93 | 5.3% | 23.78 – 29.56 | Up 23.55% | Down 0.61% |
| TRV | $55.71 | $61.23 | 9.9% | 47.35 – 57.55 | Up 17.66% | Down 3.20% |
| UTX | $78.72 | $87.13 | 10.7% | 62.88 – 79.70 | Up 25.19% | Down 1.23% |
| VZ | $35.78 | $33.24 | -7.1% | 25.99 – 36.00 | Up 37.67% | Down 0.61% |
| WMT | $53.93 | $60.80 | 12.7% | 47.77 – 56.27 | Up 12.90% | Down 4.16% |
| XOM | $73.12 | $75.08 | 2.7% | 55.94 – 73.69 | Up 30.71% | Down 0.77% |
More detail on each of the six DJIA stocks with the most implied upside as follows…
