We included the performance during the second quarter, gave the consensus analyst price target and added color if applicable. What is so interesting is that the DJIA remains well above what we gave as a consensus price target of 14,590 using our own model for this year.
International Business Machines Corp. (NYSE: IBM) is buying back more and more stock, but apparently they are the only ones doing so. The recent layoffs and zero growth are trumping the goal of $20 per share in earnings by the year 2015. Shares were down a nudge under 10% to close at $191.11 as the worst performing DJIA stock for the quarter. The consensus estimate for the stock is $222.40.
Alcoa Inc. (NYSE: AA) was the second worst DJIA stock with a drop of 7.9% in the second quarter. This aluminum giant cannot find a break nor can it find growth. This DJIA stock was cut to junk bond status and its performance and relevance might make one wonder just how long it can remain a DJIA stock. Alcoa shares closed out the second quarter at $7.82, and the consensus price target is $9.19.
Caterpillar Inc. (NYSE: CAT) closed down just over 4.5% for the second quarter at $82.49, and its consensus analyst price target is way up at $96.90. Caterpillar is suffering from growth market compression in China, and the crush-depth performance of the metals and mining sector is not helping matters at all.
Travelers Companies Inc. (NYSE: TRV) is often considered as the DJIA stock that no one realizes is in the DJIA. Apparently that was the case for stock hunters as well in the second quarter. Travelers closed down almost 4.5% in the second quarter at $79.92, but the consensus price target is $91.68.
AT&T Inc. (NYSE: T) remains a stock on sale as investors have shied away from bond-like dividend stocks. It is the highest dividend payer in the DJIA. Shares closed down 2.4% in the second quarter at $35.40, and the consensus price target is $37.11.
The market remains in a bull market, but the recent choppiness is shaking the nerves of many investors. Many investors still have missed out on the market gains and now they are starting to lose money in their longer-dated bond portfolios. This may drive them to look at these and other stocks with long track records where the share prices may be perceived to be on sale.
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