Investing

4 Dow Stocks to Buy Now That Have Lagged the Huge Rally

Verizon

This top telecommunications stock offers tremendous value at current levels, and its shares are still down 8% for the year. Verizon Communications Inc. (NYSE: VZ) is one of the largest U.S. telecom companies. It provides wireless and wireline service to retail, enterprise and wholesale customers.

The company’s wireless network serves approximately 120 million mobile connections with 115 million postpaid subscribers. Verizon’s wireline business has undergone a period of secular decline due to wireless substitution and cable competition. Verizon acquired AOL and Yahoo to create the Oath digital content platform, which has expanded the reach and brand to younger investors.

Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and it delivers integrated business solutions to customers worldwide. Furthermore, Verizon is one of the most valuable brands in the world.

The 4.46% dividend yield appears to be safe. The $64 BofA Securities price objective compares with a $60.36 consensus target price. Verizon stock closed at $55.14 on Wednesday.

Walmart

The giant retailer has rallied nicely off levels posted in March but is only flat for 2020. Walmart Inc. (NYSE: WMT) is the world’s largest retailer, operating retail stores under the formats of Walmart Stores, Supercenters, Neighborhood Markets, as well as Sam’s Club locations, in the United States, and it has a growing e-commerce business (including Jet.com). Internationally, Walmart also operates locations in several countries, including Argentina, Brazil, Canada, China, Japan, Mexico and the United Kingdom.

Each week, nearly 260 million customers and members visit the company’s 11,535 stores under 72 banners in 28 countries and e-commerce sites in 11 countries. With fiscal year 2019 revenue of $515 billion, Walmart employs about 2.2 million associates worldwide.

The company posted outstanding first-quarter results and the analysts said this:

Following Walmart’s strong fiscal first quarter results we reiterate our Buy rating and fiscal 2021 and fiscal 2022 EPS estimates, and raise our price objective. We forecast 7% fiscal second quarter US comparisons supported by continued grocery and digital strength and stronger general merchandise trends (starting late FQ1) Impressive digital growth should continue (we estimate 100% in Fiscal Q2 versus Fiscal Q1 74%) as Walmart continues executing on omni-channel strategy.

Shareholders receive a 1.74% dividend. The $145 BofA Securities price target was raised to $150. The posted consensus target is $128.56, and Walmart stock closed at $122.48 per share.

These four top stocks have all had nice moves off the lows but haven’t had “melt-up” gains like the FAANG constituents. All pay dependable dividends and look poised for solid second half gains with an improving economy and outlook. Plus, with the potential for selling after the rally off the lows, they are far safer choices for conservative investors now.

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