The Top Stocks on the Dow This Week

The Dow fell slightly this week but Johnson & Johnson, Boeing, and Cisco had much better weeks.

Jan 11, 2014 at 1:00PM

Early in 2014 there hasn't been a lot of movement on the Dow Jones Industrial Average (DJINDICES:^DJI). Not even a weaker-than-expected unemployment report yesterday could send the index down more than a fraction of a percentage point. Still, there are some companies doing well so far this year, like the three that led the Dow this week.

Johnson & Johnson (NYSE:JNJ) jumped 3.1% soon after analysts at RBC Capital and Argus both upgraded the stock early in the week. They're arguing that J&J's pharmaceutical unit will lead a recovery over the next few years. There's been a lot of pressure on the entire pharmaceutical industry as R&D has become harder and more expensive, but now that millions more people will have coverage under the Affordable Care Act, there may be more sales opportunities. Time will tell if performance picks up, but these upgrades were enough to send the stock higher this week.

Boeing (NYSE:BA) was also up 3.1% for the week, helped by the end of tense labor negotiations with machinists in Washington state. The machinists' union agreed to a contract that will allow the 777X jetliner to be built in Everett, Wash., along with wings at a nearby facility. The union is giving up a traditional pension, something that's slowly dying in corporate America, but will also get a $10,000 bonus. For Boeing, this brings some labor peace, which can be a challenge for the aircraft maker, and investors like having fewer distractions.  

Cisco (NASDAQ:CSCO) led the tech industry with a modest 1.1% bump this week. CEO John Chambers spoke at Consumer Electronics Show in Las Vegas and increased his economic impact estimate of the "Internet of Everything" from $14.4 trillion to $19 trillion by 2020. As devices from watches to traffic lights become smarter, Cisco stands to benefit by selling more networking equipment to companies around the world. What's exciting for investors is that Cisco's forward P/E ratio is just 10.7, it pays a 3.1% dividend yield, and there's about $50 billion in cash on the balance sheet. If Cisco can make the right moves in the "Internet of Everything," there's a huge opportunity for investors.

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Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends Cisco Systems and Johnson & Johnson and owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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