3 Dow Jones Stocks For Sale Now

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<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "I already said, while the Dow Jones Industrial Average maybe a imperfect index Because of its price-weighting mechanisms, the index still has a lot of value for investors. After all, the index represents some of America's largest and most successful companies. Thanks to their vast ditches, their strong cash flow and their big dividends, The Dow Jones stocks are really the blueest in the market and perfectly complement the portfolio. "Data-reactid =" 11 "> I already said, while the Dow Jones Industrial Average may be an imperfect index because of its price-weighting mechanisms, the index still has a lot of value for investors. After all, the index represents some of America's largest and most successful companies. With their large gaps, strong cash flow and high dividends, Dow Jones stocks are truly the bluest in the market and a great addition to the portfolio.

However, the different shades of blue vary.

Thanks to recent market hiccups, rising global tensions, trade war and general economic malaise, Dow Stock's actions are not all considered champions at this stage. And in fact, some of them feel the stench altogether. Mistaken trends, coupled with current global economic problems, have resulted in the chronic underperformance of several stocks in the blue chip index in recent weeks and, in fact, years for some. This puts them firmly in the camp "do not buy".

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "But how do you know which Dow Jones stocks are fortunately here at InvestorPlacewe did the leg work for you. Here are three of Dow's greatest values to avoid. "Data-reactid =" 17 "> But how do you know which Dow Jones stocks are very profitable and which are the best-sellers? InvestorPlacewe did the leg work for you. Here are three of the biggest headlines to avoid from Dow.

Dow Jones stock for sale: 3M (MMM)

Source: josefkubes / shutterstock.com

Percentage discount on 52 weeks: 26%

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The reason to buy an industrial giant 3M (NYSE:MMM) derives from the fact that the company has such a global turnover. A large part of his sales come from abroad. This has resulted in the cash flows and earnings of the stock in recent years. The reason to sell 3M is also that its sales are so global. "Data-reactid =" 42 "> Why buy an industrial giant 3M (NYSE:MMM) derives from the fact that the company has such a global turnover. A large part of his sales come from abroad. This has resulted in the cash flows and earnings of the stock in recent years. The reason to sell 3M is also that its sales are so global.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "While the trade war was prolonged, 3M has general slowdown of the global economy, as evidenced by its latest earnings report.In spite of a heavy share buyback program, earnings per share of this Dow Jones stock has slipped more than 37% over twelve monthswhile net income decreased by 2.6%. Most of the decline in sales continues to come from Asia, Europe and other emerging markets. These are the regions that generated sales in previous quarters. In addition, the strength of the dollar and fluctuations in the local currency continue to weigh heavily on 3M. "Data-reactid =" 43 "> As the trade war dragged on, 3M was hit hard by the global slowdown in the global economy, and despite a large share buyback program, earnings per share Dow Jones stock fell more than 37% year-on-year, while net sales declined 2.6%, with most of the decline in sales continuing to come from Asia., Europe and other emerging markets: it is the regions that generated sales in previous quarters and the strength of the dollar and local currency fluctuations continue to weigh heavily on 3M.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This is a big problem for the future. With the end of the trade war in sight and major international economies – such as Germany – slowing down / contracting, 3M could be between the hammer and the anvil. industrial stock warned things could get rough. Management now expects to earn $ 8.75 per share on the high-end segment, a decrease of 3.1% from its latest earnings per share estimate. "Data-reactid =" 44 "> This is a big deal for the future.For the end of the 3M trade war could be between the hammer and the anvil.At the last teleconference, the industry stock warned that things could get tough and management is now moving to $ 8.75 per unit on the high end – a 3.1% drop from its latest estimate of EPS.

Even if 3M does not run the risk of reducing its dividend and ending its long series of payment increases, the continued decline in EPS could hurt the pace of its dividends. And with a PEG ratio of almost 2 and a P / E of 18, the MMM stock is not exactly a good deal.

While many proprietary catalysts are deteriorating and the stock is relatively expensive, this is one of the Dow Jones stocks to avoid at the moment.

IBM (IBM)

Source: JHVEPhoto / Shutterstock.com

Percentage discount on 52 weeks: 12%

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "There are many old technological values of the school that rotated correctly in the new paradigm. whitefish (NASDAQ:CSCO) and Microsoft (NASDAQ:MSFT) have managed to change their operations to better compete in the cloud and on many new technology trends. And their investors have been rewarded. "Data-reactid =" 71 "> There are many old technology stocks that have rotated well in the new paradigm. whitefish (NASDAQ:CSCO) and Microsoft (NASDAQ:MSFT) have managed to change their operations to better compete in the cloud and on many new technology trends. And their investors have been rewarded.

Then there is IBM (NYSE:IBM).

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Big Blue should be a leader." Unfortunately, IBM managed to do a lot of missteps in the last decade. rise of cloud computing continues to hurt the company's bottom line. Last quarter's revenues marked the fourth consecutive decline in technology dinosaur revenues. According to estimates for 2019, IBM will have seen sales fall by almost 19% in the last five years. It's just terrible. "Data-reactid =" 73 "> Big Blue should be a leader Unfortunately, IBM has managed to make a lot of missteps over the last decade, missing key trends such as the rise of computing in the cloud continued to hurt the business The technology dinosaur's revenues declined for the fourth consecutive quarter in the last quarter of the year, with estimates for the year 2019 that IBM would have seen its sales plummet nearly 19% in the last five years.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "So, no wonder why IBM decided to Red Hat needs to inject some $ 34 billion of growth into the business, which represents growth potential. InvestorPlace donor David Moadel recently mentioned that the Dow Jones stock could be a major competitor in open source software and in the cloud. According to his estimates, however, according to IBM, Red Hat will not increase its profits until 2021 at the earliest. And given IBM's leanness in integrating acquisitions into recent history, the potential could not be realized. "Data-reactid =" 78 "> So it's no wonder that IBM has decided to buy back Red Hat to inject growth into the company. $ 34 billion, and there is growth potential . InvestorPlace David Moadel, contributor, recently mentioned that the Dow Jones stock could be a major competitor in open source software and in the cloud. According to his estimates, however, according to IBM, Red Hat will not increase its profits until 2021 at the earliest. And given the poverty with which IBM has integrated acquisitions in its recent history, the potential may not be realized.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "What's worse, it's that Big Blue recently suspended its lucrative buyback program pay for the transaction. These repurchases have in fact managed to reduce the number of its shares by about 25% in recent years. "Data-reactid =" 79 "> The worst thing is that Big Blue recently suspended its lucrative buyback program to pay the transaction and managed to reduce its share by around 25% in recent years.

In the end, there is a lot of risk for IBM and not a lot of safety net. Red Hat will take a long time to integrate, and in the meantime, investors are only getting lower sales in the meantime. There are better technology stocks and this is one of the Dow Jones values to avoid.

Caterpillar (CAT)

Source: aapsky / Shutterstock.com

Percentage discount on 52 weeks: 25%

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "It's easy to choose" caterpillar (NYSE:CAT) on the basis of the trade war and the steady decline in Chinese demand. After all, China's massive expansion and modernization of its infrastructure has long been a major driver for construction equipment. So, with the slowdown in China, the CAT is in very hot water. "Data-reactid =" 107 "> caterpillar (NYSE:CAT) on the basis of the trade war and the steady decline in Chinese demand. After all, China's massive expansion and modernization of its infrastructure has long been a major driver for construction equipment. So, with the slowdown in China, the CAT is in hot water.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The problem of the heavy machinery business is Next: It's not only China's woes that are suffering, but construction spending in all areas is starting to fluctuate dramatically. Cummins (NYSE:CMI) and Emerson Electric (NYSE:DME) recently warned that capital expenditures were down in the United States as well. These capital expenditures also concern the metallurgical and mining industries as well as the sectors. The same could be said for agricultural and forestry equipment. Global demand for powerful diesel engines and other heavy machinery is now falling "data-reactid =" 108 "> The problem for the heavy machinery business is that it's not just China's woes that are hurting its profitability." In the end, construction spending is widespread begins to wobble a lot. Cummins (NYSE:CMI) and Emerson Electric (NYSE:DME) recently warned that capital expenditures were down in the United States as well. These capital expenditures also concern the metallurgical and mining industries as well as the sectors. The same could be said for agricultural and forestry equipment. Global demand for powerful diesel engines and other heavy machinery is falling as the trade war continues.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This is a huge problem for CAT. US as well as key segments – such as energy – have helped keep the profit engine growing and overcoming many of the difficulties of China and Asia in general, but CAT / CES being on the verge of a contraction and a decrease in expenses, CAT In fact, management now expects that EPS products will enter the lower end of their estimated forecasts. If things continue to deteriorate and the recession finally hits, the Dow Jones stock could end up in a world in pain. "Data-reactid =" 109 "> This is a huge problem for CAT.Sales in the US as well as key segments – like energy – have helped keep the profit motive China and Asia in general, but with the contraction of many of these markets and the contraction of their spending, the TAC could be BPAs will go to the bottom of their forecasts and if the situation continues to deteriorate and the recession finally hits, the Dow Jones stock could end up in a world in crisis.

Today, CAT still generates tons of cash and has seen its sales increase. This resulted in a steep 20% dividend increase and an enhanced buyback program. But now that sales and cash flow growth has been moderated in the new environment full of tariffs, this steady pace of dividend growth / buybacks could slow down if things started to really hit fans.

And for investors, this could make CAT a title to add to their watch list for now.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "At the time of writing this, Aaron Levitt did not hold any positions on the aforementioned securities."data-reactid =" 112 ">At the time of writing this, Aaron Levitt did not hold any positions on the aforementioned securities.

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