Following the rapid increase in cases of the new delta variant of the coronavirus in the United States, the Dow Jones Industrial Average (DJIA) has been knocked down. This was after its record high last month. Also, the lower than expected job report has caused an uprising in the market optimism as investors expect that the Federal Reserve might delay its planned tapering.
As a result of the DJIA recovering its upward movement in the following weeks, there is the belief that some of its component companies like the UnitedHealth Group, McDonald, Honeywell International and Walgreens Boots Alliance would make good additions to an investor’s portfolio.
Following the hiring report by the Department of Labour, it indicated that US employers increased the jobs by only 235,00 in August. This was lower than the anticipated report. Global stock markets and the Wall Street futures rose this Monday. This had been bolstered by the expectations that the FEDs may delay the withdrawal of economic stimulus.
Despite this, the DJIA decreased in yesterday’s report as a result of the increasing concern and worries about the Delta variant’s influence on the US economic recovery. However, some investors and analysts remain optimistic. According to officials, the Fed may make its decision this month concerning the time to start the tapering of its bond purchases.
Having employment as an important factor, the Federal Reserve is taking time to make sure that the economic recovery is en route for sure. This position has enabled positive sentiments from the investors. Their delay in taurine bind purchases will make sure capital flows continually in the financial system. this is to help facilitate economic recovery. From these reports, we feel it would be the best option for investors to place their bets on the Dow Jones Stocks.
UnitedHealth Group Incorporated
This is a diversified health care company in the US with four operational segments – OptimumHealth, OptimumSight, UnitedHealthcare and OptimumRx. Last month it was selected by the state of Nevada as one of the four managed care companies to run its Medicaid program in Clark and Washoe counties.
The company’s revenue rose by 14.8% year over year to $71.32 billion in the second quarter. Its operating income came in at $5.98 billion. While the EPS was at $4.46, the company reported $4.27 billion in net income. It is still expected to grow by 11.1% year over year to $18.75 billion in its fiscal year 2021. Its revenue has been predicted by analysts to increase 10.4% to $283.86 billion in the current year. The company’s stock has gained 33.7% in price over the previous year.
This is a prominent global foodservice retailer. They operate and franchise more than 39,00 McDonald’s restaurants worldwide. Its target markets include – US International Lead Markets, High Growth Markets, Foundational Markets and Corporate.
In the second quarter, MCD’s total revenue boosted 57% year-over-year to $5.89 billion and Its operating income rose by 180% from its year-ago value to $2.69 billion. Its net income also spurred by 358.7% year-over-year to $2.22 billion over this period. The company’s EPS increased 353.9% from the year-ago value to $2.95. Its strong fundamentals are indicated in its POWR Ratings. The stock has an overall B rating, which equates to Buy.
Honeywell International Inc.
HON is a diversified technology and manufacturing company worldwide. Aerospace; Honey Building Technology; Performance Materials and Technologies; and Safety and Productivity Solutions are the company’s four operational segments. For the second quarter, its net sales increased 17.8% year-over-year to $8.81 billion.
The company’s operating margin boosted 450 basis points year-over-year to $18.1% and its net income improved by 32.3% year-over-year to $143 billion. Its EPS grew 33.4% from the prior year quarter to $2.04. The company’s POWR Ratings indicates this favourable outlook. The company has an overall B rating, which means investors can buy in our proprietary rating system.
Walgreens Boots Alliance Inc.
Walgreens performs as a pharmacy-led health and beauty retail company. The company’s three business segments include Retail Pharmacy USA; Retail Pharmacy International; and Pharmaceutical Wholesale. Its sales rose by 12.1% year-over-year to $34.03 billion in the third quarter.
Its operating income was $1.13 billion, compared to a $1.68 billion operating loss in the prior-year quarter. The company recorded $1.20 billion in net income, compared to its $1.71 billion net loss in the third quarter of 2020. Its EPS amounted to $1.38, compared to a $1.95 loss per share during the same period last year. It is no shock that the company has an overall B rating, which equates to Buy in our POWR Rating system.