U.S. equities are pushing higher on Thursday as investors celebrate the passage of the GOP’s tax reform bill, look ahead to the holiday-shortened week next week and take in all the positive end-of-year vibes.
The stock market is on the verge of posting the first “perfect year” ever with 12 consecutive monthly rises.
While a lot of good news has been priced into stocks already, there is obviously further upside as investors prepare for earnings repatriation, increased earnings power and larger paychecks for millions of Americans.
Here are five blue-chip titans that are surging in response:
Dow Stocks to Buy: Apple (AAPL)
Apple Inc. (NASDAQ:AAPL) shares look ready to rise out of a two-month consolidation range as the iPhone X supply stabilizes and investors look ahead to fresh catalysts like the launch of the HomePod speaker and the iMac Pro. There has been some analyst chatter of potentially underwhelming iPhone X demand, but that’s hard to see with delivery times only now catching up to requests.
The company will next report earnings on Jan. 30 after the close. Analysts are looking for earnings of $3.77 per share on revenues of $86.3 billion. When the company last reported on Nov. 2, earnings of $2.07 beat estimates by 20 cents on a 12.2% rise in revenues.
Dow Stocks to Buy: Caterpillar (CAT)
Caterpillar Inc. (NYSE:CAT) shares are going parabolic now, exploding out of the short consolidation rate between October and November to hit new highs representing a 3x gain from its early 2016 lows. Analysts at Citigroup recently upgraded their price target to $160 from $145.
The company will next report results on Jan. 25 before the bell. Analysts are looking for earnings of $1.75 per share on revenues of nearly $12 billion.
When the company last reported on Oct. 24, earnings of $1.95 beat estimates by 68 cents on a 24.6% rise in revenues.
Dow Stocks to Buy: Chevron (CVX)
Chevron Corporation (NYSE:CVX) shares are launching higher on Thursday, up 3.3% to jump over resistance near $120 going back to the summer of 2014. Not only has the stock completely erased the 2014-2015 drop related to the fall in crude oil prices, but it has more than doubled from its lows to reach new records. Analysts at Cowen raised their price target to $160, citing the performance of the company’s operations in the Permian Basin.
The company will next report results on Jan. 26 before the bell. Analysts are looking for earnings of $1.25 per share on revenues of $38.59 billion. When the company last reported on Oct. 27, earnings of $1.03 beat estimates by six cents on a 20.1% rise in revenues.
Dow Stocks to Buy: Goldman Sachs (GS)
Goldman Sachs Group Inc (NYSE:GS) shares are pushing to new highs, rising further out of its October-November consolidation range, eclipsing the highs seen earlier this year near $255. The stock will benefit from the maintaining of the carried interest loophole and likely positive impact the tax legislation will have on capital markets activity as foreign earnings are brought back home (stock buybacks, dividends, etc.).
The company will next report earnings on Jan. 17 before the bell. Analysts are looking for earnings of $5.16 per share on revenues of $7.8 billion.
When the company last reported on Oct. 17, earnings of $5.02 per share beat estimates by 85 cents on a 2% rise in revenues.
Dow Stocks to Buy: Home Depot (HD)
Home Depot Inc (NYSE:HD) shares are extending higher, rising over their early December highs to cap a gain of more than 15% from their early November lows. A combination of solid home construction activity, limited supply and hurricane rebuilding are creating a perfect storm for investors.
The company will next report results on Feb. 20 before the bell. Analysts are looking for earnings of $1.62 per share on revenues of $23.6 billion. When the company last reported on Nov. 14, earnings of $1.84 per share beat estimates by two cents on an 8.1% rise in revenues.
Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.