Dow Jones Industrial Average in Spotlight: 5 Stocks Report This Week, Including 2 of the Worst Performing
For the second straight week, five of the 30 components in the Dow Jones Industrial Average will report quarterly financial results. This week’s list includes several of the index’s worst performers.
Dow Jones Industrial Average Gets Spotlight
As earnings season continues, the Dow Jones Industrial Average gets the spotlight as multiple components report this week. Here are the reports this week:
- The 3M Company (NYSE:MMM): Q3 report Tuesday before market open
- International Business Machines (NYSE:IBM): Q3 report Wednesday after market open
- Honeywell International (NASDAQ:HON): Q3 report Thursday before market open
- Procter & Gamble Company (NYSE:PG): Q1 report Thursday before market open
- American Express Company (NYSE:AXP): Q3 report Friday before market open
Together, these five stocks make up around 12% of the leading ETF tracking the index, the SPDR Dow Jones Industrial Average ETF (NYSE:DIA): Here are the rankings of the five stocks in the price-weighted ETF:
- AXP: 12th largest holding, 3.58% of fund
- IBM: 18th largest holding, 2.65%
- HON: 21st largest holding, 2.42%
- MMM: 23rd largest holding, 1.88%
- PG: 24th largest holding, 1.82%
The five stocks make up 12.35% of the ETF’s assets, which could increase the fund’s volatility this week. This week will likely see less volatility than last week, when the first five names reported more than double this week’s assets at 25.74%.
Earnings Estimates
Here are the current earnings estimates and history over the last 10 quarters, based on Benzinga Pro data.
MMM
- EPS: $2.39 estimate vs. $2.19 last year, beaten estimates in 10+ straight quarters
- Revenue: $6.61 billion estimate vs. $6.30 billion last year, beaten estimates in nine of the last 10 quarters
IBM
- EPS: $2.87 estimate vs. $2.65 last year, beaten estimates in 10+ straight quarters
- Revenue: $16.82 billion estimate vs. $16.33 billion last year, beaten estimates in eight of the last 10 quarters
HON
- EPS: $2.16 estimate vs. $5.64 last year (prior to a spinoff), beaten estimates in nine of the last 10 quarters
- Revenue: $5.00 billion estimate vs. $10.41 billion last year, beaten estimates in seven of the last 10 quarters
PG
- EPS: $1.88 estimate vs. 1.99 last year, beaten analyst estimates in 10+ straight quarters
- Revenue: $22.79 billion estimate vs. $22.39 billion last year, beaten analyst estimates in five of the last 10 quarters
AXP
- EPS: $4.48 estimate vs. $4.14 last year, beaten analyst estimates in eight of the last 10 quarters
- Revenue: $20.12 billion estimate vs. $18.43 billion last year, beaten analyst estimates in seven of the last 10 quarters
Key Items to Watch
The five Dow Jones Industrial Average stocks cover a wide range of sectors and topics this week.
For Procter & Gamble, investors will watch for market share gains and commentary on consumers trading down to store-brand items.
Honeywell’s report comes after a recent spinoff, which could highlight the company’s future growth opportunities.
IBM’s report will be one of the five most closely tied to recent trends like AI and software, and it could show whether the old company is a winner or loser in AI disruption. The stock is currently the second-worst performer among Dow Jones Industrial Average stocks.
Year-to-Date Performances
The Dow Jones Industrial Average trails the S&P 500 and Nasdaq 100 tracking ETFs year to date and over the past year. Here are the current performances:
- SPDR S&P 500 ETF Trust (NYSE:SPY): +12.4% year-to-date, +14.4% one year
- Invesco QQQ Trust (NASDAQ:QQQ): +17.5% year-to-date, +17.8% one year
- SPDR Dow Jones Industrial Average ETF: +8.0% year-to-date, +11.2% one year
Here’s a look at the performance of the five Dow Jones stocks reporting this week:
- MMM: +2.4% year-to-date, +5.9% one year
- IBM: -18.9% year-to-date, -16.7% one year
- HON: +3.3% year-to-date, +3.8% one year
- PG: +10.9% year-to-date, +3.5% one year
- AXP: -15.7% year-to-date, -10.1% one year
Along with IBM ranking as the second worst performer year-to-date in the index, American Express is the fourth worst performer, giving this week two of the worst stocks in the index and a chance to rebound or show investors reasons for the stocks to turnaround. Procter & Gamble is the best performer of the five currently, ranking 15th among the 30 index components.
Photo: Shutterstock