Five Top Dow Stocks With The Most Upside Potential

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The Dow Jones Industrial Average is around seven percent higher in the past 90 days and near its all-time high. Among its top performing components, those up more than 10 percent in the same period, analysts believe Caterpillar, Chevron, Disney, DuPont and Johnson & Johnson have the most upside potential, judging by their mean price targets.
Caterpillar
The share price is almost 17 percent higher than a month ago and about two percent below the recent 52-week high.
CaterpillarCAT
posted better-than-expected earnings for the most recent quarter, despite continued sluggishness in the mining sector. The stock has outperformed the S&P 500 and competitor Deere over the past six months. Just 10 of the 25 analysts who follow the stock and were surveyed by Thomson/First Call recommend buying shares, with the rest rating the stock at Hold. The mean price target, or where analysts predict the share price will go in the next year, is more than six higher than the current share price. The dividend yield is near 2.3 percent.
See also:Warren Buffett Is Good On IBMChevronChevronCVX
shares rose more than 12 percent in the past three months, recovering from a pullback in January. Last week, the company posted a profit decline due to lower production in the first quarter. The stock has underperformed not only the S&P 500 over the past six months, but peers
Exxon Mobil
and
BP
as well. For the past three months, the consensus recommendation of the analysts polled has been to buy shares of Chevron. A move to the mean price target would represent a gain of almost four percent for the shares. At least one analyst sees more than 11 percent further upside, though. It has a dividend yield near 3.2 percent.
Disney
After a more than 15 percent rise in February, shares have since traded mostly in a range of $78 to $82. This entertainment giant plans to make the most of its Marvel and Star Wars acquisitions, and it is expected to post strong earnings this week. Over the past six months,
Walt Disney
DIS
has outperformed competitors
Time Warner
and Twenty-First Century Fox. Of the 29 analysts surveyed, 17 recommend buying shares, and none rate it at Underperform. The analysts see some headroom for the shares, as their mean price target is more than five percent higher than the current share price. That target would be a new multiyear high. The dividend yield is about 1.1 percent.
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DuPontDuPontDD
shares have risen more than 11 percent from 90 days ago, much of that gain coming in February. The chemicals company blamed the weather for its mixed first-quarter results. Over the past six months, the stock has outperformed the broader markets but underperformed competitor Dow Chemical. For at least three months, the consensus recommendation of the surveyed analysts has been to hold shares. A move to the mean price target would be a gain of less than four percent. However, the street-high price target is more than 16 percent higher than the current share price. And the dividend yield is about 2.7 percent.
See also:AT&T Said To Be Considering Acquisition Of DirecTVJohnson & Johnson
Shares have seen a more than 14 percent gain in the past three months despite retreating less than two percent in the past week. This health care products company recently boosted its dividend by around six percent. Over the past six months, the stock has outperformed Abbott Laboratories and the S&P 500. Less than half of the 22 analysts recommend buying
Johnson & JohnsonJNJ
shares. Their mean price target is about five percent higher than the current share price, and it would be a new multiyear high for the stock. The dividend yield now is near 2.8 percent.
At the time of this writing, the author had no position in the mentioned equities.
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Posted In: Trading Ideasabbott laboratoriesbpCaterpillarChevronDeeredisneydow chemicalDuPont and Johnson & JohnsonExxon MobilTime WarnerTwenty-First Century Fox
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