24/7 Wall St. is rather focused on, and perhaps a bit concerned about, how the Dow Jones Industrial Average can manage to post big gains in 2014. After all, the DJIA rose by some 26.5% in 2013 and 8 of the 30 DJIA stocks at the end of 2013 were trading above what Wall Street analysts considered to be fair value.
This focus has led us to target the best DJIA stock, or stocks, of the week. That title goes to Johnson & Johnson in a narrow victory over The Boeing Co. (NYSE: (BA). The gains were actually so close that they are a tie. We would normally not be so detailed on the percentage gains in favor of rounding, but the results were simply so close that we wanted to highlight it.
Keep in mind that the DJIA itself actually lose 0.2% in this last week. The SPDR Dow Jones Industrial Average (NYSEArca: DIA), which aims to track the DJIA, turned in a loss of -0.127%. The difference here is that the ETF can close on a bid price or an ask price, and there can be some miniscule tracking error on top of the SPDR management fee.
24/7 Wall St. has even run a bullish and bearish case for the DJIA, including just about each and every one of the 30 DJIA components individually.
Johnson & Johnson (NYSE: JNJ) managed to squeeze out gains of 3.146%. What is amazing is that an analyst downgrade on Friday did not deter J&J’s resolve. Barclays cut the rating to Equal Weight from Overweight. The healthcare products and consumer products giant closed the week out at $94.74, just shy of its all-time high of $95.99. J&J’s current consensus price target is up at $98.85 as of now. J&J also offers that 2.8% dividend yield.
The Boeing Co. (NYSE: BA) turned in a gain of 3.11%, so a mere 0.036% was the determining factor for these stocks on which was the best performer of the week. Investors are still flocking to Boeing shares over the massive backlog of orders ahead, and the bullish and bearish case for 2014 offer the reminder that Sterne Agee is the street’s highest price target up at $175 for Boeing. The dividend here for investors is 2.1%.
Friday’s deceiving unemployment rate of 6.7% was clouded by the payrolls additions coming in at only half of expectations. The so-called workforce participation rate also plunged down to 68.2%, the worst reading in close to 35 years.