The Top Stocks on the Dow This Week

It was a wild week on Wall Street, but by the end, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) had risen 0.61%. There's been fear over an emerging-markets collapse, Federal Reserve tapering, and employment, but at the end of the day it's strong earnings that have kept investors bidding stocks higher. It's another lesson that the daily noise of the market can often distract us from the long-term goal of picking companies that grow their value year after year.

Speaking of consistent growth, Disney (NYSE: DIS  ) reported another stellar quarter this week, and the stock was up 4.2%. Revenue was up 9% to $12.3 billion, and net income jumped 33% to $1.8 billion on the back of box-office hits Thor: The Dark World and Frozen, which is still near the top of the box office more than two months after being released. Lower content costs at media networks, which is Disney's largest business, helped by increasing operating income 20% in the quarter. In short, Disney is hitting on all cylinders from the box office to theme parks, and that's why it had another great week.  

DuPont (NYSE: DD  ) was up 4% this week without much news outside of signing a deal that will allow farmers to access weather and commodity market information from mobile devices. I think the bigger trend here is that investors are looking for value and safe investments with turmoil in early 2014, and DuPont provides that, with a 12 P/E ratio and a dividend yield of 3%.  

Pfizer (NYSE: PFE  ) rounds out the top three this week with a 3.5% gain after getting good news on a new drug trial. The drug, called palbociclib, significantly delayed progression of symptoms in a breast cancer trial, meeting the trial's primary goal. Analysts think this could be a $5 billion drug for the company and is at the forefront of new cancer treatments being tested today. After years of worrying about drugs coming off patent, investors are welcoming the news that a growth product may be on the way.  

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  • Report this Comment On February 08, 2014, at 1:41 PM, funfundvierzig wrote:

    In our opinion, DuPont represents neither safety nor value here. DD is not even selling for the price, 65.87, at which it opened the century 14 years ago on Jan. 3, 2000. For years, DuPont's bombastic bosses promised that with severe shrinkage, dumping one big business after another, DuPont would grow strongly and profitably. It never happened.

    For the next 18 months, a distracted DuPont Senior Management will be focussed on retreating from two centuries of core competence in chemicals and splitting up the bureaucratic conglomerate organisation into pieces and assigning men and women to the spin-off or the agricultural remnants.

    We don't believe DuPont will have sufficient intellectual capital to compete effectively and to catch up with world leaders, Monsanto, BASF, Dow Chemical, Syngenta, and Novozymes.

    Merely the perspective of one individual investor, long MON, DOW, SYT, and short DD...funfun..

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